On Tuesday the Pound Sterling to Norwegian Krone exchange rate hit a low of 10.5410 before recovering slightly to trend in the region of 10.5590.
Sterling managed to achieve a high of 10.57 against the Norwegian Krone following the release of sturdy UK Mortgage Approvals figures, but gains were fleeting.
UK Mortgage Approvals were shown to have increased by more-than-forecast in June, supporting the case in favour of a sooner-rather-than-later approach to UK interest rate hikes.
As the week continues additional movement in the Pound Sterling to Norwegian Krone exchange rate could be caused by the Norway’s Business Confidence and Unemployment Rate data, as well as Friday’s Manufacturing PMI.
It is hoped that the nation’s business sentiment gauge rallied from 7 to 9.7 in the second quarter and economists have forecast that the unemployment rate held at 3.3% in May.
Meanwhile, the Pound Sterling to Swedish Krona (GBP/SEK) exchange rate was also struggling on Tuesday, hitting a low of 11.5755.
After the UK’s mortgage figures the GBP/SEK pairing briefly achieved over 11.6000
Later today the Pound to Krona currency pairing could experience volatility as investors digest a stream of influential economic reports for Sweden.
The nation is scheduled to publish its Business Confidence and Consumer Confidence indexes as well as growth figures for the second quarter.
The Swedish business sentiment measure came in at 103.7 in June and is expected to have eased slightly to 103.6 in July. The gauge of consumer confidence has been forecast to hold at 101.3.
The growth data, meanwhile, may show that the Swedish economy contracted by 0.1% in the second quarter of the year. The nation posted contraction of 0.1% in the first quarter on a quarter-on-quarter basis but recorded year-on-year growth of 1.9%. Annual expansion of 1.6% is expected this time around.
Other Swedish data to look out for includes Friday’s Swedbank Manufacturing PMI.
In other currency news, the US Dollar strengthened after a domestic gauge of consumer confidence jumped by considerably more than anticipated.
Pound Sterling to Norwegian Krone (GBP/NOK) Exchange Rate Forecast
Our forecast for the Pound Sterling to Norwegian Krone exchange rate is that the pairing will edge lower still as the week continues if the Norwegian data matches estimates and the UK’s few influential data releases fail to impress.
However, the Pound may be buoyed on Friday if the UK’s Manufacturing PMI for July surprises expectations and shows that expansion in the sector actually accelerated rather than slowed this month. As it stands, industry experts believe that the Markit gauge will have fallen from 57.5 to 57.2.
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