Pound Norwegian Krone News: GBP/NOK Rises 0.4% on Norway Production Flop and Barnier’s Brexit Remarks on Irish Border

Norwegian Krone to Pound (NOK/GBP) Exchange Rate Losses come on Lower Industrial Production

The Norwegian Krone’s (NOK) losses against the Pound (GBP) today have been caused by the latest industrial production data, which revealed a sharp decline.

Both the monthly and year-on-year readings for July have printed negatively, with more positive reports of rising manufacturing output failing to make up for the loss.

Restored Hopes for Brexit Negotiations Boost GBP/NOK Exchange Rate

On the other side of the pairing the Pound (GBP) has firmed against the Norwegian Krone (NOK) today, rising by 0.4% to hit an interbank exchange rate of NOK10.92.

This movement comes from fresh hopes for a successful Brexit deal, with EU Chief Negotiator Michel Barnier causing another Pound Sterling rally by suggesting that Irish border issues could soon be resolved.

Pound Sterling to Norwegian Krone Forecast: Will GBP/NOK Exchange Rate Rise on UK GDP Growth?

Pound Sterling (GBP) may be able to rise further against the Norwegian Krone (NOK) in the week ahead, as UK GDP, jobs market and central bank data could support the UK currency.

Monday’s GDP reading for July could bring early GBP/NOK gains if it shows as-forecast monthly growth.

Additional support for the Pound could come from Tuesday’s jobs market stats – reports of accelerating wage growth could boost GBP demand even if the unemployment rate rises.

The main event for Sterling traders will be Thursday’s Bank of England (BoE) interest rate decision, which might bring hints of a 2019 interest rate hike.

BoE policymakers aren’t expected to adjust rates from 0.75%, so all eyes will be on the minutes and press conference from BoE Governor Mark Carney for clues on how the BoE will act in 2019.

Norwegian Krone to Pound Weekly Forecast: Are NOK/GBP Exchange Rate Losses ahead on Lower Inflation?

The Norwegian Krone (NOK) risks declining against the Pound (GBP) in the coming week, when Norwegian inflation rate data comes out on Monday.

August’s readings are predicted to show a slower pace of price growth across the board, which could disappoint NOK investors and cause a decline against the Pound.

Year-on-year inflation is tipped to slide from 3% to 2.6%, which would be a move closer to the Norges Bank target of 2%.

Above-forecast inflation increases the likelihood of Norges Bank raising interest rates; lower inflation conversely reduces the chances of any immediate action.

Some economists are predicting seven rate hikes by 2020 and slower inflation would put such a path of rate hikes in doubt.

Adam Solomon

Adam joined the team at TorFX soon after graduating from University in 2005 with a degree in Journalism. Since then Adam has advanced to become both Head of Trading and Head of Treasury. His keen interest in the currency market and knowledge of what drives exchange rates makes him perfectly positioned to produce regular market updates focused on the movements of the major currencies.

Contact Adam Solomon