The Norwegian Krone (NOK) extended its run of gains against the Pound (GBP) and Euro (EUR) on Wednesday after retail sales data added to Monday’s strong inflation data.
Against the Pound, the Norwegian Krone was trading in the region of 10.327, against the Euro the Norwegian Krone was trading in the region of 0.121.
Data released earlier in Wednesday’s session showed that retail sales in the Scandinavian nation recovered in June from the previous month.
According to Statistics Norway, retail sales volumes excluding automobile sales, increased by a seasonally adjusted monthly figure of 1.2% in June, reversing the -0.9% decline recorded in May, which was the first fall seen in four months.
Year on year retail sales climbed advanced a working day adjusted 2.3% in June. The retail sales value index also climbed by 4.3% annually in June.
The Norwegian currency was able to advance to a new two-month high against the Pound after the UK currency was softened by data which showed that wage growth had declined in the three months leading to June.
A separate report however showed that the UK’s jobless rate fell again from 6.5% to 6.4%. According to the Office for National Statistics, the number of unemployed citizens filing for unemployment benefit declined by 33,600 last month, beating economist expectations for a figure of 30,000.
Despite the positive jobs data a decline in wage growth weighed as data showed that pay growth is continuing to lag inflation. The disappointing figure reduces the likelihood that the Bank of England will raise interest rates before the end of this year.
Against the Euro, the Norwegian Krone was able to advance beyond a two-month high as the single currency was further weakened by the release of disappointing industrial production data.
The report released by the European Union’s Statistics agency showed that the output from the regions mines, utilities and factories declined by 0.3% in June and was stagnant from the previous year.
Norwegian Krone to Euro Exchange Rate Forecast
The Euro is forecast to fall further on Thursday as EuroStat is due to publish the regions latest economic growth data. Economists are widely expecting the report to show that the 18-member currency blocs GDP will rise by just 0.1%.
With the region’s recovery, stalled fears are growing that the Eurozone could begin to slide back into recession.
Investors will also be concerned that the European Central Bank will introduce new monetary easing measures at its next policy meeting in order to try to revive the bloc’s stalled recovery.
Norwegian Krone (NOK) Continues Upward Trend against Pound (GBP) and Euro (EUR)
The Bank of England’s (BoE) Inflation Report has sparked yet more difficulty for the Pound. The committee decided to maintain their current monetary policy which has remained unchanged since 2009. The dovish report essentially snuffs out any hope of an Interest rate hike before the close of the year.
The Euro continues its downward trend as investors digest the poor Industrial Production data.
With very little domestic data to be released expect the Krone to continue to trend higher against the Pound and the Euro.
Norwegian Krone (NOK) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
, Norwegian Krone,10.3640 ,
Euro,, Norwegian Krone,8.2280 ,
US Dollar,, Norwegian Krone,6.1617 ,
Swedish Krona,,Norwegian Krone,0.8950 ,
[/table]
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