Pound Norwegian Krone Exchange Rate Climbs amid Norges Bank Policy Decision
A combination of rising oil prices and Norway’s strong economic outlook caused the Pound Norwegian Krone (GBP/NOK) exchange rate to spend most of the week tumbling. The Pound (GBP) is attempting recovery but gains are limited.
After opening this week at the interbank level of 11.64, GBP/NOK briefly touched on its best levels since the beginning of January.
After touching that high though, GBP/NOK tumbled and this morning touched on a new weekly low. At the time of writing, GBP/NOK is trending a little above those lows in the interbank region of 11.60.
GBP/NOK remains well above last week’s levels though. What’s more, the Pound could climb more if tomorrow’s UK data impresses investors.
Pound (GBP) Exchange Rates Benefitting from UK Economy Hopes
The Pound is advancing against some major rivals like the Euro (EUR) and US Dollar (USD) today. Of course, it is also attempting recovery against the strong Norwegian Krone.
Stronger than expected UK data yesterday, as well as optimism over the UK government’s coronavirus vaccine plans, are helping the Pound’s rally to continue.
According to Charles Diebel, Head of Fixed Income at Mediolanum Asset Management, the Pound’s recovery is being supported by:
‘avoiding the worst effects for a hard Brexit combined with a very aggressive Covid-19 vaccine plan’
Norwegian Krone (NOK) Exchange Rates Resilient as Norges Bank Decision Unsurprising
The Norwegian Krone (NOK) continues to be one of the most resilient major currencies on the market this year.
With the global economy looking to gradually recover from the coronavirus pandemic, Norway’s resilient economic performance has left markets speculating even better performance.
According to Petr Krpata, Strategist at ING, it ‘should be the strongest year for the Norwegian Krone in a decade’.
Today’s Norges Bank policy decision was unsurprising, with the bank leaving policy frozen. Still, analysts predict the Norges Bank could be among the first of major central banks to become more dovish as Norway’s economy recovers.
Pound Norwegian Krone (GBP/NOK) Exchange Rate Awaits Friday’s Key UK Data
The Pound to Norwegian Krone exchange rate’s appeal is limited for now, as the Norwegian Krone remains resilient.
However, the Pound’s rally could pick up pace if Friday’s UK data impresses investors.
Friday’s session will see the publication of Britain’s December retail sales results. PMI projections for this month will also be published.
They will give investors a better idea of how Britain’s economy is weathering the coronavirus pandemic in recent months. Stronger than expected January PMIs could offset some lockdown fears and further boost the Pound’s appeal.
So long as Britain’s economic recovery outlook improves, the Pound is more likely to sustain a recover.
As for the Norwegian Krone, it is likely to remain strong itself due to Norway’s even more optimistic economic outlook. It may take a jump in Sterling demand for the Pound Norwegian Krone (GBP/NOK) exchange rate to mount a meaningful recovery.