The GBP/SGD currency pair settled below Friday’s high of 1.7208, its strongest level since May 14th, after recent weak UK macroeconomic data did little to dampen market expectations of future BoE policy tightening.
New data by the UK Office for National Statistics showed that retail sales had decreased 1.3% in April, following a revised 0.6% drop in March. The softer reading pointed to weaker household demand and raised fresh concerns about economic momentum.
This followed softer UK consumer inflation readings and an unexpected increase in the UK unemployment rate.
Market participants continued to factor in the likelihood of at least one interest rate hike by the BoE in 2026.
BoE Governor Andrew Bailey stated on Wednesday that a rise in market interest rates since the start of the Iran war had given the central bank more time to evaluate the economic implications of the conflict.
Sterling bulls, however, remain cautious amid serious leadership challenges facing UK Prime Minister Keir Starmer.
The exotic Forex pair gained 0.55% for the week.
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