Forecast-Beating UK Sales Data Pushes GBP/NOK Exchange Rate Up
The Pound (GBP) has made a small advance against the Norwegian Krone (NOK) today, trading at a level of 10.75 on the interbank rate.
This appreciation follows the news that UK retail sector activity rose by more than expected in June, with the Confederation of British Industry (CBI) reading for distributive trades rising from 11 points to 32.
CBI Head of Economic Intelligence Anna Leach attributed this surge in sales to the summer sunshine:
‘Higher-than-average temperatures seem to have had a positive impact on shoppers, with retailers benefitting from above-average seasonal sales and improved order volumes growth.’
Surprise Norwegian Unemployment Rate Drop Fails to Bring NOK/GBP Gains
Some positive Norwegian jobs market data out today has failed to translate into any Norwegian Krone to Pound (NOK/GBP) exchange rate gains.
The unemployment rate fell from 3.9% to 3.7% in April, beating forecasts for a higher 3.8% reading.
This is the lowest jobless rate in the country since late 2014, but the lack of NOK/GBP gains suggests that Pound Sterling is simply more appealing at present.
GBP/NOK Exchange Rate Forecast: Is Pound Sterling Turbulence ahead on BoE Speech and GDP Data?
The Pound’s (GBP) advance against the Norwegian Krone (NOK) today could extend on Thursday afternoon, when Bank of England (BoE) policymaker Andy Haldane will give a speech.
Mr Haldane’s opinions are of high importance to GBP traders following last week’s BoE meeting where he, along with two others, voted for higher interest rates.
If Mr Haldane’s remarks suggest that he is still looking for a UK interest rate hike in 2018 then the Pound to Norwegian Krone (GBP/NOK) exchange rate could rise sharply.
Beyond this, Friday morning’s UK ecostats might be less supportive and cause losses for Pound Sterling.
Final measures of UK GDP growth and business investment in Q1 2018 are both expected to confirm a slowdown, which could lower confidence among GBP traders.
Will Norwegian Spending Stats Cause a Late-Week NOK/GBP Exchange Rate Rise?
This week’s last significant Norwegian economic news will come out on Friday morning, consisting of a household consumption measure and retail sales stats for May.
These results could support the Norwegian Krone (NOK) if they print as expected; higher consumption is forecast along with an almost doubling of annual retail sales.
Levels of month-on-month sales growth are tipped to slow, but a forecast-matching annual increase from 1.8% to 3.4% could still cause a NOK/GBP exchange rate rise.