The Pound Sterling to Norwegian Krone (GBP/NOK) and Pound Sterling to Swedish Krona (GBP/SEK) exchange rates strengthened on Friday as oil prices fell and Swedish data disappointed.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate climbed to a session high of 11.9020
Falling oil prices allowed the Pound Sterling to surge higher by more than 1% against the Norwegian Krone. The cause of the decline in the commodity’s decline was down to an easing in concerns that the military action being launched by Saudi Arabia and its allies in Yemen will negatively affect upon global oil supplies.
On Thursday, oil prices jumped by 6%, the biggest daily gain in more than a month after the military action began.
‘Crude-oil supply hasn’t been affected yet, but what’s happening in Yemen is an escalation of something that has been building up over the last few years between Saudi Arabia and Iran. There’s a huge conflict there in terms of who’s more dominant in the Middle East,’ said Tom James, head of commodities consulting firm Navitas Resources.
The Norwegian currency fell despite the release of data, which showed, that retail sales increased by a more than expected level last month. According to Statistics Norway, sales rose to a seasonally adjusted annual rate of 0.9%, a rise from the -0.7% recorded in the previous month. Economists had been forecasting for a rise of 0.5%.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate of 12.8212
The Swedish Krona weakened against the Pound and other peers after domestic data showed that retail sales growth in the Scandinavian nation slowed in February. According to Statistics Sweden, retail sales increased just 0.2%. Sales were forecast to rise by 0.3%.
On an annual basis, sales growth slowed to 4.85% from 5.1% in the preceding month. Economists had been expecting a rise of 3.6%. Sales for consumable goods were expected to gain by 1.7% and durables increased by 7.5%.
Pound Rises on BoE Comments
The Pound Sterling meanwhile was supported by comments made by Bank of England governor Mark Carney and deputy governor Ben Broadbent.
At a Bundesbank conference in Frankfurt, Carney said that the BoE is still on track to hike interest rates despite low inflation.
‘We’re still in a position where our message is…that the next move in interest rates is going to be up,’ Carney said.
