Half-Month-Worst for Pound to Norwegian Krone (GBP/NOK) Exchange Rate despite Oil Price Plunge

Pound to Norwegian Krone Exchange Rate Remains Weak amid Poor UK Outlook

Investors remained hesitant to buy the Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate following yesterday’s slump. Even as prices of oil tumbled, weak prices in Norway’s biggest export didn’t damage Norwegian Krone (NOK) resilience.

GBP/NOK may be in for another week of losses. Last week saw the pair tumble from the interbank level of 11.90 to 11.80, and this week’s losses have been even more solid.

After a sharp drop on Wednesday, GBP/NOK trends closer to a low of 11.63 at the time of writing on Thursday. This is the worst level for GBP/NOK in over half a month, since late July.

Pound (GBP) Exchange Rates Remain Unappealing after Yesterday’s Recession News

Wednesday’s European session saw the publication of Britain’s Q2 Gross Domestic Product (GDP) growth rate report.

As was expected, Britain’s economy experienced a sharp contraction and entered recession. However, the growth rates reported were not quite as dire as forecasts projected.

Despite this though, the news was not exactly good news for the UK and Pound (GBP) outlooks.

Amid concerns that Britain’s job market still has the worst ahead of it, as well as persisting hard Brexit fears, the Pound is still seeing pressure against more resilient rivals.

According to Strategists at ING:

‘Investors are awaiting the next chapter in the EU-UK trade negotiations, which appear the true driver of Sterling after growth data failed to particularly shake GBP off its recent relatively tight ranges’

Norwegian Krone (NOK) Exchange Rates Resilient despite Oil Price Plunge

The Norwegian Krone (NOK) was able to hold its ground against a weaker Pound (GBP) today. This is despite worsening global trade jitters.

Prices of oil, Norway’s biggest export, have slumped in recent sessions. Prices are slumping due to worsening coronavirus cases across the globe, flaming fears that the pandemic could damage the global economy more than expected.

The Norwegian Krone remained resilient due to resilient economic activity in Norway.

Norwegian data continues to beat forecasts. Today’s Norwegian consumer confidence data was less dire than expected at –6.60, and the previous figure was revised higher from 7.60 to 3.40.

Pound to Norwegian Krone (GBP/NOK) Exchange Rate Awaits Coronavirus and Brexit Developments

The Pound to Norwegian Krone (GBP/NOK) exchange rate has been left weaker this week.

Britain’s economic outlook remains dominated by uncertainties and concerns, making it difficult for the Pound (GBP) to avoid losses. Meanwhile the Norwegian Krone (NOK) remains appealing due to resilience in Norway’s economic activity.

This trend could be set to continue as well. Unless there is a solid shift in UK or Norwegian data, the pair is unlikely to mount much of a recovery any time soon.

Next week will see the publication of Norwegian trade data and UK inflation results.

Aside from data, upcoming coronavirus and Brexit concerns may be even more influential.

If Britain’s coronavirus situation worsens or more lockdown is signalled, the Pound may see even deeper losses.

On top of this, hard Brexit fears are only likely to mount if there are no optimistic developments any time soon. The UK and EU are running out of time to secure a post-Brexit trade deal, leaving the Pound to Norwegian Krone (GBP/NOK) exchange rate vulnerable.

Josh Jeffery

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