The Norwegian Krone (NOK) climbed to its best level since June against the Pound (GBP) after data out of the Scandinavian nation showed that Norway’s economic growth accelerated more than forecast in the second quarter.
According to Statistics Norway, the nation’s Gross Domestic Product (GDP) excluding gas, oil and shipping expanded by 1.2%, a rise from the first quarter’s figure of 0.5%.
Total economic growth including all factors expanded by 0.9% on a quarter-on-quarter basis. The number beat economist expectations for a figure of 0.5%.
The first quarters figure was also revised to 0.2%. On a yearly basis GDP fell -0.3% from the previous quarter’s figure of 3.9%.
Aiding growth in Norway has been a recovery in house prices and strong consumer spending. The labour market in Scandinavia’s wealthiest nation has also improved and the Norwegian Krone’s weaker showing against the Euro over the past year has assisted the nation’s exporters.
Consumer spending rose 0.8 percent in the quarter, while investment climbed 1.4 percent. Exports fell 0.6 percent and imports increased 0.9 percent, the agency said.
Petroleum and shipping was unchanged and final domestic use of goods and services increased 1.6 percent.
The GDP growth data also supported the Krone by damping expectations that the Norwegian Central bank will need to cut interest rates again. Economists are now forecasting that Norway will see its economy soften over the next year but by 2016, it will see growth return to normal.
Norwegian Krone to Pound Sterling Exchange Rate Forecast
The Pound weakened by 0.75% against the Krone on Thursday after the UK currency was softened by the release of weaker than forecast Retail Sales Data.
According to the UK’s Office for National Statistics, retail sales increased by a seasonally adjusted 0.1% in July, below expectations for a rise of 0.4%. June’s retail sales figures were revised upwards by 0.2%.
Year-on-year, retail sales rose at an annualized rate of 2.6% in July, below expectations for a 3% gain, after rising at a rate of 3.4% in June.
Core retail sales, which exclude automobile sales, increased by a seasonally adjusted 0.5% last month, compared to forecasts for a 0.4% gain, after falling 0.1% in the preceding month.
Following the release of the data, the Pound declined further against the Norwegian Krone and added to losses against the US Dollar. The GBP/EUR exchange rate also declined back below the 1.25 level.
Norwegian Krone to Pound Sterling Continues to Climb
The Norwegian Krone to Pound Sterling exchange rate is currently trending in the region of 0.0982. The Krone has continued its bullish run versus the Pound given the lack of domestic data releases to alter the course. It seems that traders are still pulling away from Sterling on the back of disappointing retail sales growth.
The current Eurozone issues have also contributed to the Pounds declination.
The Krone is strengthening steadily after the nation’s Gross Domestic Product data exceeded the anticipated growth.
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,8.2041 ,
US Dollar,, Norwegian Krone,6.1845 ,
[/table]
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