GBP/NOK Exchange Rate Sinks, Statistics Norway Predicts Increased Growth in 2020
The Pound Norwegian Krone (GBP/NOK) exchange rate fell by -0.3% today, with the pairing currently trading around 11.985kr after Norway’s manufacturing output in October flatlined at 0% this morning.
The Norwegian Krone (NOK) has continued to benefit from bullish forecasts for Norway’s economy, however, with Statistics Norway (SSB) predicting a 2.4% growth in the economy in 2020, which is slightly faster than the previously predicted 2.2% back in September.
The SSB also predicted the economy would slow in the next 12 months, clipping some of NOK’s gains today.
The SSB said in its statement:
‘Over the next 12 months, the cyclical upturn that began in early 2017 is likely to come to an end. The slowdown in the international economy and the markedly lower growth in petroleum investments are contributing to the change of pace.’
With the Norwegian economy begin sensitive to global business cycles, ongoing uncertainty over US-China trade relations is leaving some NOK traders feeling jittery.
GBP/NOK Exchange Rate Falls as UK Markets Brace for Johnson-Corbyn Head-to-Head
The Pound (GBP) fell against many of its competitors today, with UK political developments once again in focus as Prime Minister Boris Johnson is due to face a head-to-head televised debate with Labour leader Jeremy Corbyn later on this evening.
GBP investors are feeling increasingly jittery, however, as a poor performance from Boris Johnson could weaken the Conservative’s lead in the opinion polls ahead of next week’s general election.
With markets generally preferring a Tory majority next week, any signs of the Labour Party rising in the polls could threaten a hung parliament and weaken market confidence in the Pound on heightened political uncertainty.
In UK economic news, today saw the publication of the UK Halifax house prices figure for November, which beat forecasts and rose by 1% on the month, while the year-on-year figure also rose at 2.1.
Russell Galley, Managing Director at Halifax, commented:
‘While a degree of uncertainty remains evident, it’s also clear that buyers and sellers are responding to factors such as improved mortgage affordability and the limited supply of available properties.’
GBP/NOK Outlook: Could Improving Norwegian Inflation Data Boost the Norwegian Krone?
Norwegian Krone (NOK) investors will be looking ahead to Tuesday’s publication of the Norwegian core inflation figure for November, with any signs of improvement likely to improve the NOK/GBP exchange rate.
Pound (GBP) traders, meanwhile, will be awaiting the release of October’s industrial production and manufacturing production figures on Tuesday, with any signs of improvement likely restoring some hope in the British economy.
The GBP/NOK exchange rate will continue to be driven by British political developments ahead of Thursday’s vote, with any signs of the Conservative’s losing their lead on Labour in the election polls being Pound-negative.