The GBP/SEK currency pair settled above Friday’s low of 12.8695, its weakest level since June 18th, after data showed the UK economy had shrunk for a second straight month in May, which added to expectations that the Bank of England could cut interest rates next month.

UK GDP contracted 0.1% month-on-month in May, following a 0.3% contraction in April. The latest figure confounded market expectations of 0.1% growth.

Markets are now pricing in a 78% chance of a 25 basis point interest rate cut by the BoE in August, compared to 64% chance two weeks ago.

Meanwhile, data out of Sweden showed the local economy had contracted at a monthly rate of 0.2% in May, reversing a revised down 0.2% growth in April.

“The Swedish economy saw a minor contraction in May, weighed down by lower output in service-producing industries and the general government. From the demand side, the downturn was explained, among other factors, by weaker household consumption and a decline in net exports of goods,” Mattias Kain Wyatt, economist at Statistics Sweden, said.

The GBP/SEK currency pair settled 0.03% lower at 12.8999 on Friday.

The exotic Forex pair lost 1.09% for the week.