Over the past week, the Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending within the range of 12.6469 to 12.7920.
In general, the Norwegian Krone softened versus its major currency rivals over the past week in response to falling crude prices. With global supply increasing exponentially, and with major rigs continuing to churn out significant amounts of ‘black gold’, oil prices weakened considerably. As an oil exporting nation, Norway’s domestic asset softened versus the majority of its currency rivals. Wednesday of this week saw the Krone decline after May’s Unemployment Rate met with market projections of a rise from 4.2% to 4.3%. This, coupled with low oil prices and anxieties regarding Greece, caused the Norwegian asset to trend lower against its currency competitors.
The Pound, meanwhile, fluctuated considerably over the past week as a result of mixed ecostats and differing opinions from central bank officials as to the timing of a Bank of England (BoE) benchmark interest rate hike. With speculation that the BoE will liftoff a rate hike cycle broadly in line with the Federal Reserve, the Pound has generally strengthened versus its most traded currency competitors.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate is currently trending in the region of 12.7422.
During Thursday’s European session the Krone gained versus many of its currency rivals thanks to rising crude oil prices. The appreciation was somewhat sluggish, which can be linked to a drop in local second-quarter Business Confidence, but better-than-anticipated Retail Sales on both a monthly and annual basis in June aided the Krone’s ascent. The Norwegian asset declined a little against the Pound as a result of positive British ecostats which showed a massive drop in British personal insolvency.
Looking ahead, there is the potential for the Norwegian Krone to appreciate as oil prices continue to climb. Since US Crude Oil Inventories unexpectedly dived by -4203K, the potential for a sustained crude price increase is likely to cause heightened demand for the Norwegian asset. Tuesday of next week will see July’s Manufacturing PMI which is forecast to remain in deficit territory, but rise from 44 to 47.78.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending within the range of 12.6883 to 12.7987 during Thursday’s European session.