The Pound has been on what can only be described as a bull run against the Norwegian Krone this week, with an opening rate of 11.9297 being succeeded by a high of 11.9483 against the Scandinavian currency.
While the Krone has flopped against Sterling, the currency has made notable advances against both the Euro and US Dollar.
Uncertain Opening to the Week for the Pound
One of the most notable UK Referendum developments of last week came at the very end, when US President Barack Obama arrived in the UK in the wake of the Queen’s Birthday on Thursday.
Obama spoke out in clear favour of the UK remaining in the EU, insinuating that mass economic instability and uncertainty could stem from a ‘Brexit’ outcome.
While members of the ‘Leave’ campaign were quick to criticise the announcement, the Pound strengthened on the wave of support triggered by the opinion of such an influential figure.
However, in the wake of a more robust defence of the ‘Out’ group’s goals by Co-Chair Michael Gove, the Pound trimmed gains on Monday.
That being said, the latest ‘Brexit’ polls helped the Pound rebound on Tuesday and gain across the board.
Norwegian Krone Fluctuates on Oil Prices
With Norwegian data limited, general market sentiment and commodity price shifts have been largely responsible for the Krone’s movement.
While oil price volatility had resulted in previous Krone weakness, the currency was supported on Tuesday as the price of Brent Crude Oil climbed from around $44.50 to $45.15.
GBP/NOK Exchange Rate Forecast
For the rest of the week, Pound Sterling/Norwegian Krone exchange rate movement may occur as a result of tomorrow’s UK GDP growth stats for the first quarter, a Referendum-related speech from an OECD official on the same day, Thursday’s Norwegian retail sales and unemployment rate results and Friday’s UK consumer credit outcome.
In terms of UK predictions, GDP is expected to fall on the year and the quarter, while consumer credit is expected to reprint at 1.3bn.
Norway’s economic expectations include a drop in annual retail sales but a rise in monthly ones and a stagnation of the unemployment rate for February at 4.8%.
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