The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate advanced by more than 0.40% on Wednesday due to the release of disappointing data from the Scandinavian nation.
The Pound Sterling to Norwegian Krone (GBP/NOK) hit a session high of 11.795
Falling oil prices were shown to have knocked consumer confidence in Scandinavia’s wealthiest economy as Norwegians expect the nation to struggle over the course of the coming year. The report compiled by Finance Norway showed that consumer confidence fell to its lowest level since the 2008 financial crisis.
The seasonally adjusted confidence index fell by 7.4 points in the first quarter, down from the revised 13.6 seen in the final quarter of last year. That figure was originally reported at 15.4. The figure was the lowest level recorded since the first quarter of 2009.
‘The big drop in oil prices has clearly made a strong impression on people. Most participants still said that they did not expect their own personal finances to worsen much though. Many have utilised, and will utilise, the big drop in interest rates as an opportunity to reduce their debt and thereby also their own vulnerability,’ said FNO chief executive Idar Kreutzer.
A separate report published by Statistics Norway showed that the unemployment rate in the Norse nation remained unchanged at 3.7% in December, matching the 3.7% figure recorded in the preceding month. Analysts had expected Norwegian Unemployment Rate to remain unchanged at 3.7% last month.
UK Economic Data Supports Pound Exchange Rate
The Pound Sterling meanwhile found support from the release of data, which showed that Mortgage approvals rose more than expected in January. The rise was a relief to analysts as the preceding months figure had been the lowest seen in two years.
According to the British Bankers Association, the number of new mortgages approved increased to 36,400 last month, up from the previous figure of 35,700. Economists had been forecasting for a figure of 36,200.
Also supporting the Pound were comments made by Bank of England Policy Makers, which suggested that interest rates could rise sooner than forecast. BoE Governor Mark Carney also said that inflation in the UK could rebound from its current record lows to the banks 2% target over the next few years.
Market attention will now focus on Thursdays UK GDP second estimate report.
