The Norwegian Krone (NOK) continued to trade in the region of a two-week high against the Pound (GBP) and was holding close to a seven-week high against the Euro after data showed that the Scandinavian nations trade balance surplus increased in July.
According to Statistics Norway, the country’s Trade Balance rose to 22.60 billion NOK from 17.80 billion NOK in the preceding month.
The figure was below economist forecasts for a reading of 28.70 billion NOK.
The Pound meanwhile was little moved despite the release of data, which showed that the UK economy expanded by 3.2% on an annual basis, the fastest growth recorded since 2007.
Economists had been expecting a figure of 3.1%.
GDP may have improved but economists were little impressed after they said that the report continues to show that the economic recovery is less balanced than first thought.
Disappointing wage growth data released earlier in the week was also continuing to put pressure upon Sterling.
‘Today’s second GDP estimate confirmed that the economic recovery was strong, but became a little less balanced in the second quarter. Growth in industrial production was revised down from 0.4% to 0.3%, and construction output is now thought to have held steady, where it was previously estimated to have fallen by 0.5%. Meanwhile, output in the services sector is still thought to have risen by a robust 1% in Q2,’ said Paul Hollingsworth from Capital Economics.
Against the Euro, the Norwegian Krone was continuing to trade at a seven-week as data released on Thursday showed that the Eurozone stagnated in the second quarter of the year.
Norwegian Krone to Pound Sterling Exchange Rate Forecast
The Pound could regain ground against the Norwegian Krone if data released on Tuesday shows that the UK economy is continuing to strengthen.
The session will see the release of inflation data and retail price index reports.
Midweek, the NOK/GBP exchange rate could see movement after the Bank of England releases its latest policy meeting minutes.
Investors will be watching closely for signs that there was some disagreement in maintaining interest rates at 0.5%.
If the minutes do show some disagreement among policy makers then the Pound could rise on the back of investors raising their bets for a rate hike occurring earlier than forecast.
The next major data release due for the Krone will come on Thursday with the release of the latest Norwegian GDP report.
Economists are expecting growth on a quarterly basis to increase from the previous reading of 0.3% to 1.29%, year on year growth is likely to have slowed from 3.9% to 1.59%.
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,10.2640 ,
Euro,, Norwegian Krone,8.2275 ,
US Dollar,, Norwegian Krone,6.1484 ,
[/table]
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