This deterioration comes after the release of UK retail sales stats for October.
UK retail sales rose by 0.3% on the month, but on the year a drop of -0.3% was seen.
While these figures have not inspired major support for the Pound, they were still slightly better than forecast.
The main issue is that lower sales figures now could imply a poor Christmas for retailers.
GBP Trading Rate Shaken by UK November Budget Uncertainty
In the background, there also has been growing tension about the upcoming UK budget announcement on November 22nd.
Economists believe that Chancellor Philip Hammond is between a rock and a hard place, facing criticism for austerity measures but unable to reverse the strategy with increased spending.
Pointing out the limited options open to Hammond has been former Bank of England (BoE) official Andrew Sentence;
Twitter placeholder. Tweet is loading very soon...— Optimistic Developer (@optdev) November 12, 2016
Rachel Lund of the British Retail Consortium was also cautious. As the Head of Retail Insight and Analytics, Lund has warned that; ‘Consumers are clearly feeling the squeeze, with sales down year on year and spending being directed into the second-hand market. It is therefore vital that the Chancellor does not add to the pressures on UK households’ finances in his upcoming Budget’.
Norwegian Krone (NOK) Firms on Rising October Trade Balance
On the other side of the currency pairing, the Norwegian Krone has gained ground because of trading data.
During October, the Norwegian trade balance has risen to 15.1bn from 10.5bn in September.
This was not as high a figure as forecast, but still shows that the country is firmly in surplus territory.
In other supportive news, Norwegian and Iranian officials have been meeting to discuss the possibility of firmer financial ties.
While the two nations might seem unlikely financial partners, Norwegian Ambassador in Tehran Odyssey Norheim has been optimistic about the situation;
‘Norway is very eager to boost its ties with Iran…especially in sectors like oil and gas, renewable energies, shipping, fishing and modern agriculture’.
Will Pound to Krone Rate (GBP/NOK) Crash on 2018 Budget News?
Looking ahead, the Pound could post heavy losses against the Krone on November 22nd when the UK budget announcement is made.
Philip Hammond might do the impossible and appease party members and traders alike, but chances are that the Pound will experience some volatility after the announcement.
From Norway, the next major data will also come on the 22nd – this will be September’s unemployment rate reading.
Most economists believe the national jobless rate will increase from 4.1% to 4.2%, although there are a handful of spectators that predict a drop to 4%.
If the latter projection is accurate, the Norwegian Krone could against the Pound.
A 4% unemployment rate hasn’t been seen since January 2015, so such a reading could give NOK a boost.
Latest GBP NOK Exchange Rate Movement
The Pound has fallen against the Norwegian Krone today to an interbank rate of 10.8290. NOK/GBP has risen to 0.0922.