Pound to Norwegian Krone Exchange Rate Pressured by Oil Prices and Strong Norway Data

Pound to Norwegian Krone Exchange Rate Near Fortnight Worst 

Investors sold the Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate yesterday as the Norwegian Krone (NOK) benefitted from the market mood. The pair is attempting to recover today, but Brexit and coronavirus vaccine uncertainty is limiting the Pound’s appeal. 

GBP/NOK have seen broadly mixed movement lately. Last week saw GBP/NOK briefly jump above the key level of 11.80, but ultimately plunge and end the week below its opening levels in the region of 11.71. 

This week so far, GBP/NOK has been trending with a downside bias. Yesterday GBP/NOK touched on a fortnight low of 11.66, but the interbank rate currently drifts around the level of 11.68. 

Pound (GBP) Exchange Rates Less Appealing as Brexit Starts to Show its Impact 

While Britain’s coronavirus vaccine outlook has been fairly optimistic in recent weeks, the Pound (GBP) has been unable to register strong gains against the Norwegian Krone. 

The Pound was supported by Bank of England (BoE) optimism last week, as the bank indicated that negative interest rates were not likely any time soon. 

However, the British currency fell back from its advance attempts in recent sessions. Uncertainties about the Brexit process linger amid signs that AstraZeneca’s coronavirus vaccine was not as effective as hoped on some variations of Covid19. 

On top of this, fresh reports of post-Brexit trade difficulties between the UK and EU are making markets anxious about the impact of Brexit on Britain’s economy. 

There are still issues around Northern Ireland’s border, and reports suggest that attempts to extent a grace period will be rejected. 

Norwegian Krone (NOK) Exchange Rates Up on Strong Data and Oil Prices 

The past week has seen a notable amount of stronger than expected data from Norway. This, as well as higher market trade sentiment, has kept the Norwegian Krone appealing. 

Friday saw the publication of Norway’s stronger than expected industrial production results. Weaker manufacturing data was not enough to offset Krone demand. 

Then, today’s Norway consumer confidence data for Q1 printed at –5.1 rather than the expected contraction of –8.2. 

Prices of oil, a key export for Norway, have also been strong in recent sessions. This is also supporting the Norwegian Krone. 

Pound to Norwegian Krone (GBP/NOK) Exchange Rate Awaits Friday’s Key Data 

Some Norwegian inflation rate data will be published on Wednesday, and Bank of England (BoE) Governor Andrew Bailey will hold a speech. 

However, Pound to Norwegian Krone (GBP/NOK) exchange rate investors are more eagerly awaiting key data due for publication at the end of the week. 

Friday’s session will see the publication of Q4 growth rate results from both Britain and Norway. It will give markets a much better idea of how thee economies are performing amid the coronavirus pandemic. 

Other key data to keep an eye on during Friday’s session includes UK business investment and production results from Q4 and December. 

Of course, other factors which have been looming over outlooks, such as coronavirus and Brexit issues, will continue to influence the Pound to Norwegian Krone (GBP/NOK) exchange rate as well. 

Josh Jeffery

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