Poor UK Vehicle Sales Limit GBP/NOK Exchange Rate Gains
The Pound (GBP) has risen slightly against the Norwegian Krone (NOK) today, although this advance comes despite some negative UK car sales data.
On the year in September, new car sales have fallen by -20.5% compared to growth of 23.1% in September 2017.
This decline is blamed on a variety of factors, including tougher testing, consumer caution and changes to car tax.
Nevertheless, Pound Sterling demand has been shored up today by yesterday’s comments from Prime Minister Theresa May at the Conservative Party Conference.
The PM once again threatened a no-deal Brexit as a possible outcome, but also kept the door open to continued negotiations with EU officials.
Norwegian Krone to Pound (NOK/GBP) Exchange Rate Slides on Falling Manufacturing Activity
The Norwegian Krone’s (NOK) losses against the Pound (GBP) today come following news of a sharp drop in Norwegian manufacturing output, as reported on Monday.
The NIMA manufacturing PMI for September dropped from 60.5 points to 55.7, below the anticipated 56.4 point printing.
This measurement of manufacturing output has proven volatile in recent months, with July’s sub-50 point reading jumping to 60.5 points in August and falling a month later.
Next Week’s Pound Sterling Norwegian Krone Forecast: Will Norwegian Manufacturing Stats Boost NOK/GBP Exchange Rate?
The next economic data that could affect the GBP/NOK pairing will come from Norway, in the form of Monday’s manufacturing and industrial production figures.
These are expected to show accelerating output for the monthly and annual industrial readings, along with the yearly manufacturing figure.
The Krone could rise against the Pound on such supportive news, even if the monthly manufacturing reading shows a forecast-matching slowdown.
Any initial NOK/GBP exchange rate gains could give way to volatility on Wednesday next week, when Norwegian inflation data will be released.
Covering price growth in September, the readings are tipped to show a slower pace of price growth across the board, for the monthly, annual, base and core printings.
Slowing inflation reduces the likelihood of a Norges Bank interest rate hike, which would thwart current expectations for a rate increase in the next 12 months.
GBP/NOK Exchange Rate could Rise on UK GDP Growth
Beyond next week’s Norwegian data, Pound Sterling (GBP) could advance against the Krone (NOK) on the coming Wednesday’s UK GDP data.
Covering changes in August, the reading is tipped to show a potentially GBP-boosting rise from 0.3% growth to 0.4% during the month.