GBP/NOK Exchange Rate Rangebound as Norwegian Oil Strikes Raise Economic Concerns
The Pound Norwegian Krone (GBP/NOK) steadied today and is currently trading around 11.0799kr on the interbank market.
The Norwegian Krone (NOK) stabilised against the Pound (GBP) following the publication of the Norwegian registered unemployment figures for May, which rose to 77.79K against the previous month’s 76.66K.
The non-seasonally adjust unemployment figures, meanwhile, eased by 2.1% against April’s 2.3%.
This came after news that around 200 Norwegian offshore oil workers are planning to go on strike from 4 June over wages, potentially hitting seven offshore fields and lowering output from Europe’s largest producer of crude oil and natural gas.
GBP/NOK Exchange Rate Steadies as UK Consumer Confidence Rises to Eight-Month High
The Pound, meanwhile, benefited from the UK GfK consumer confidence figures today, which jumped to an eight-month high at -10, against last month’s -13.
Joe Staton, an Executive at GfK, commented:
‘Consumers will need to be convinced in heart, head and wallet that Brexit’s murkiness has finally come to an end.’
Today also saw the publication of the UK consumer credit figures for April, which increased to $0.942B, drawing an average in line with July 2018.
UK mortgage approvals for April, however, improved to 66.2612K, exceeding the consensus and providing some uplift for the GBP/NOK exchange rate.
Brexit news is remaining in focus for many Sterling traders, and with Labour leader Jeremy Corbyn backing a soft Brexit, yet saying that a second referendum is ‘some way off’, this is leaving some Pound traders feeling jittery on UK-EU no-deal fears.
Yesterday saw Chancellor Philip Hammond refer to a second referendum as one of the only ways out of the current political deadlock in the UK.
GBP/NOK Forecast: UK Political Developments to Remain in Spotlight
Pound traders will be looking ahead to Monday’s publication of the UK Markit Manufacturing PMI figures for May, which are expected to improve.
NOK traders, meanwhile, will be looking further ahead to Wednesday, which will see the Norwegian current account figures for the first quarter.
However, with oil strikes set to begin next week, this is likely to remain in focus for many Norwegian markets – and with Norway being the largest producer of oil in Europe, this is likely to prove a drag on the Norwegian Krone.
The GBP/NOK exchange is likely to be driven by political developments into next week, with Brexit and the uncertainty surrounding the future of the Conservative Party leadership to remain in focus.