The GBP/SEK currency pair settled above recent low of 12.5379, its weakest level since March 2nd 2023, after stronger-than-expected UK GDP growth and Sweden’s final CPI data.

The UK economy grew 0.5% month-over-month in February, following zero growth in January. It has been the strongest monthly GDP increase since March 2024. Market consensus had pointed to a 0.1% growth.

Yet, Pound gains seemed limited as tariff developments will likely shape the outlook for the economy.

The Trump administration announced this week a 90-day pause on tariffs that exceed the 10% baseline for most of the United States’ trade partners.

However, the United Kingdom and many other US trade partners will still be subject to the baseline tariff of 10%.

Prior to the tariff pause, there had been growing concerns about the potential economic repercussions for the UK, given the importance of its trading relationship with the United States.

UK’s trade deficit in goods has increased to GBP 20.81 billion in February from GBP 18.22 billion in January, data by the Office for National Statistics showed.

Meanwhile, the latest data out of Sweden showed annual CPI inflation had been confirmed at 0.5% in March, slowing from 1.3% in February.

It has been the lowest rate since December 2020 and the eighth straight month when inflation has remained below the Riksbank’s 2% objective.

The GBP/SEK currency pair settled 0.12% lower at 12.7581 on Friday.

The exotic Forex pair lost 1.04% for the week.