The Pound to Norwegian Krone (GBP/NOK) exchange rate softened to its lowest level in three days on Thursday as better than expected Industrial and Manufacturing production data lent support to the Scandinavian currency.
According to a report released by Statistics Norway, the Nordic nation saw manufacturing production increase 3.1% in June, higher than the 2.4% figure recorded in the previous month and far better than the 1.97% widely forecast by economists.
Also lending support was a separate report, which showed that Industrial production in the country also increased strongly in June from the preceding month.
Year on year Industrial production increased by 3.2%, a sharp rise from the decline of -4.0% recorded in May and was better than the -0.76% figure expected by the markets. On a month on month basis production improved by 5.7%, a leap from the previous figure of -5.9%, and was a better number than the 1.11% forecast.
Norway has been under pressure from accelerating house price growth, which is creating unease. According to the country’s Financial Supervisory Authority, household debt in the country is rising more quickly than disposable incomes.
Pound Sterling to Norwegian Krone Exchange Rate Forecast
The Norwegian Krone could come under pressure against Sterling and other peers over the course of the week.
Russian Prime Minister Dmitry Medvedev told a government meeting that the country will ban the import of meat, fruit, vegetables, fish, milk and dairy products from Norway and other nations that imposed sanctions against Russia for its involvement in the shooting down of a passenger jet last month.
The Pound is likely to see some movement later in Thursday’s session as the Bank of England (BoE) is due to announce its latest quantitative easing and interest rate decision.
Traders are widely expecting that the bank will choose to leave interest rates at the record low level of 0.5% and maintain its quantitative easing programme at £375 billion.
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,10.5459,
Euro,, Norwegian Krone,8.3751 ,
US Dollar,, Norwegian Krone,6.2645 ,
[/table]
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