The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate has advanced by around 0.31% on Tuesday. This can be attributed to a huge dip in Norwegian business confidence. Sterling, however, has generally declined against the majority of its most traded rivals after Bank of England Deputy Governor Minouche Shafik made a speech outlining trader foul play within financial markets.
The Pound Sterling to Norwegian Krone exchange rate is currently trending in the region of 10.6495.
On Monday, the Pound managed to halt a bearish run initiated last week by dovish minutes from the Bank of England after domestic data printed above expectations. Reported Sales was forecast to decline from 31 to 25, but the actual result was maintenance of the previous figure of 31.
However, the positive economic data result hasn’t been enough to stave off negative sentiment towards the BoE, which was expected to tighten monetary policy by now.
An absence of domestic data has generally seen the Norwegian Krone depreciate against its most traded currency competitors.
The Pound Sterling to Norwegian Krone exchange rate has fallen to a low today of 10.5896.
On Tuesday, sentiment towards the Bank of England took another negative hit after Deputy Governor Shafik made a speech regarding trader integrity. ‘Much has been done to strengthen the financial system,’ Shafik said in a speech at the London School of Economics. ‘But some of the benefits of these advances are being offset by a long tail of outrageous conduct cases. These are like salt rubbed into the wounds to public confidence in financial markets.’
During the speech, Shafik also addressed issues regarding monetary policy normalisation. ‘We would need to see more of the data pointing in the same direction in terms of price pressures – particularly in terms of wages and unit labour costs (before raising interest rates),’ she said.
The Norwegian Krone has softened against nearly all of its major peers on Tuesday after a particularly disappointing business confidence reading. Business Confidence was expected to rise from 7.0 to 9.08, however the actual result tumbled to just 2.0.
Pound to Norwegian Krone Exchange Rate Forecast to Soften
With both retail sales and unemployment rate data due for publication on Wednesday, the Norwegian Krone has the potential to rebound from Tuesday’s losses. Wednesday’s British economic data is forecast to decline. Consequently the GBP/NOK exchange rate should soften if the data from both countries meets with forecast figures.
The Pound Sterling to Norwegian Krone exchange rate has advanced to a high today of 10.6659.
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Norwegian Krone,10.6714 ,
Euro,, Norwegian Krone,8.4066 ,
US Dollar,, Norwegian Krone,6.6188 ,
