The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate edged lower by around -0.13% on Thursday morning, whilst the Pound Sterling to Swedish Krona (GBP/SEK) exchange rate advanced 0.58%.
After domestic data showed house prices declined in June, the Pound edged lower versus many of its currency rivals. Construction data, due for publication later on Thursday morning, is likely to provoke Sterling movement.
The Norwegian Krone, meanwhile, strengthened versus most of its peers on Thursday morning. The appreciation can be linked to rising crude prices, although black-gold is still holding below $60 a barrel.
The Swedish Krona dived versus its major rivals after Riksbank cut the cash rate from -0.25% to -0.35%. Most analysts expected the central bank to hold the rate but Riksbank dropped the lending rate deeper into negative territory. This was as a result of unexpected Krona appreciation, in accordance with policymakers, and to combat uncertainty abroad.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate is currently trending in the region of 12.3550.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trending in the region of 13.1530.
Yesterday…
Pound Sterling to Norwegian Krone (GBP/NOK) Exchange Rate Forecast to Gain on Oil Prices
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate strengthened by around 0.33% on wednesday afternoon.
After British manufacturing output showed growth in the sector slowed unexpectedly, the Pound slumped versus many of its peers. The seasonally-adjusted Manufacturing PMI was forecast to increase from 51.9 to 52.5, but the actual result dropped to 51.4 in June. Rob Dobson, Senior Economist at survey compilers Markit said; ‘UK manufacturing remains dependent on the domestic market, and especially the consumer, continuing to show some strength. On this score, recent signs of a pick-up in wage growth and low inflation may provide some respite to weather the volatility in trade with our European partners.’
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate is currently trending in the region of 12.3413.
GBP/NOK declines were limited as Norway’s manufacturing output also failed to meet with expectations. The NIMA Manufacturing PMI came in at 44 in June, well below the median market forecast 47.95. In addition to poor manufacturing weighing on demand for the Krone, falling oil prices also aided the downtrend. Crude has cooled significantly after Greece defaulted on payment to international creditors and accelerated output from both the US and OPEC is aiding the price depreciation.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending within the range of 12.2510 – 12.1950 today.
Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate Forecast to Gain on UK Financial Stability Report
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate advanced by around 0.30% on Wednesday afternoon.
The Sterling depreciation was somewhat slowed thanks to comments from Bank of England (BoE) Governor Mark Carney, following the British Financial Stability Report, who stated that the UK was reasonably well insured against a Greek exit. He did warn, however, that the crisis could trigger a broader market adjustment. He also said that Greek events have made the stability outlook worse. Also preventing a larger Sterling depreciation was news that a UK mining firm has been given the green light to build a potash mine which could add 1,000 jobs and $1.6 billion added to the economy each year.
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trending in the region of 13.052`.
The Krona, meanwhile, edged higher versus many of its peers despite a slowdown in Swedish manufacturing output. June’s Swedbank Manufacturing PMI was expected to climb from 54.8 to 55.2, but the actual result dropped to 52.8. The Krona avoided depreciation, however, thanks to speculation that Riksbank will hold the cash rate at Thursday’s policy meeting. Riksbank is expected to hold off cutting the cash rate until September before it goes deeper into negative territory with turmoil in Greece adding pressure to ease again. ‘While the strengthening of the Krona keeps the door open for a rate cut in July, the most likely outcome is that they will stay on hold’ until September, said Torbjoern Isaksson, chief analyst at Nordea. ‘Rising inflation fuels expectations of a less expansionary policy line.’
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate was trending within the region of 12.9399 – 13.0640 today.
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