Pound Sterling to Norwegian Krone (GBP/NOK) Exchange Rate Higher on Unemployment Data

The Pound (GBP) regained ground against the Norwegian Krone (NOK) on Wednesday after official data showed that unemployment in the Scandinavian nation increased more than forecast in June.

Sterling was experiencing mixed trade against its major peers as a lack of market moving domestic data out of the UK saw investors seek direction for the currency.

According to Statistics Norway, unemployment in the Norse country rose at a seasonally adjusted annual rate of 3.3% in June, up from the 3.2% figure recorded in the preceding month.

The data took economists by surprise as they had been expecting the nation’s jobless rate to remain unchanged at 3.2%.

The Norwegian Krone had been enjoying a run of positive economic data releases and the publication of a report which showed that Norway’s economy expanded more than expected, managing to climb to a two-month high against the Euro.

Against the Euro, the Krone eased slightly on Wednesday as the unemployment data weighed and as investors chose to widely ignore the release of a number of disappointing economic data releases out of the single currency bloc.

Also weighing upon the Krone was news that around 300 energy and oil companies in Norway were affected by the biggest computer hacking attacks to occur in the country.

The National Security Authority Norway (NSM) revealed that 50 companies in the nation’s oil sector were hacked and 250 others were being warned. The cyber attack is said to be the largest of its kind to have occurred in Norway.

NSM said the hack attack was forewarned by “international contacts”. The agency has suspicions as to who is behind the attack, but do not want to make such information public at this time.

The Norwegian currency was also under some pressure from lower oil prices. The commodity is one of Norway’s biggest exports and as such, any drop in its value has a weighing affect upon the Krone.

Oil prices edged lower Monday as abundant supplies weighed on the market, muting any potential impact from conflicts in Ukraine and Libya.

On Wednesday Pro-Russian separatist rebels appeared to have launched a counter offensive against Ukrainian government forces in the Donsestk region, lowering hopes that a peace deal can be reached. The fighting comes after Ukraine’s President Petro Poroshenko laid out his plans for peace.

Economists will now be looking to Friday’s Norwegian Manufacturing Purchasing Managers Index. It is expected that the index will rise from 50.6 to 50.63 in August.