The Pound briefly touched its highest level in twelve days against the Norwegian Krone on Tuesday as UK inflation data came in better than expected.
Earlier in the session the Norwegian Krone softened against a number of peers after data showed that Norway’s economy expanded in the first quarter of 2014 as consumer spending was able to counter the impacts of a fall in investment.
Despite the rise the growth rate failed to meet forecasts.
The data also showed that consumer spending power was enough to also counter some of the effects of a weaker oil industry.
According to the Statistics Norway seasonally adjusted GDP excluding shipping, gas and oil, increased by 0.5%. GDP for the fourth quarter of 2013 was revised down to 0.5% from 0.6%. Total GDP quarterly output grew by 0.3%, below economist forecasts for a rise to 1%.
The report also showed that consumer spending in the Nordic nation increased by 0.8% in the first quarter, but investment declined by 1.8%. Exports also increased by 1.6% but imports fell by 2.6%.
“The weakness we saw through 2013 will continue throughout 2015 as we see a significant cooling down in the oil sector. Growth in the housing sector and in residential investments will probably remain modest,” said an analyst from Nordea Bank AB.
Due to its lucrative oil industry, not being a member of the Eurozone and it not having any debt, Norway has ridden out Europe’s economic crisis well.
Registered unemployment in the country remains below 3% compared to some areas of the Eurozone seeing unemployment of over 20%.
The Pound meanwhile eased from its earlier highs against the Euro and other peers after concerns that the UK inflation rate has overtaken wage growth could harm economic growth.
Norwegian Krone Exchange Rate
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Norwegian Krone,
,US Dollar,0.1684 ,
Norwegian Krone,,British Pound,0.1001 ,
Norwegian Krone,,Euro,0.1229 ,
Norwegian Krone,,Swedish Krona,1.1113 ,
[/table]
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