Pound Sterling to Norwegian Krone (GBP/NOK) Exchange Rate Forecast to Dip as Oil Prices Edge Higher
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate softened by around -0.22% on Thursday morning.
The British Pound edged lower versus its peers on Thursday morning after housing data failed to impress. Nationwide House Prices advanced by 3.3% on the year in June; failing to meet with the median market forecast of 4.5%. On the month, June’s House Prices declined by -0.2%; once again failing to meet with the market consensus of a 0.5% increase. Most analysts aren’t worried that this signals long-term slowdown in house prices given the current shortage of properties.
Nationwide’s chief economist Robert Gardner said: ‘House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.’ He added: ‘The slowdown in house price growth is not confined to, nor does it appear to be driven primarily by, developments in London. In quarter on quarter terms, London has continued to see price growth at or above the rate in the UK overall over the past three quarters.’
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate is currently trending in the region of 12.3500.
The Norwegian Krone, meanwhile, ticked higher versus many of its currency competitors thanks to rising crude prices. Oil prices tumbled after US stockpile data saw higher-than-expected production supported by increased output from the Gulf of Mexico. However, prices stabilised and edged higher as markets feared that bearish factors have already been priced-in.
The Norwegian Krone appreciation has been somewhat sluggish, however, thanks to ongoing geopolitical tensions in the Euro-area weighing on economic sentiment.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending within the range of 12.3215 – 12.3830.
Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate Forecast to Advance after Riksbank Cuts Negative Rate Further
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate strengthened by around 0.54% on Thursday morning.
Although UK house price data disappointed, better-than-expected construction output could support a Sterling appreciation. The Markit/CIPS UK Construction PMI came in at 58.1 in June; bettering the median market forecast 56.5. Commenting on the report, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: ‘Construction was on a real high this month with the sharpest rise in overall activity since February as the sector made up for lost ground since the General Election.’
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate is currently trending in the region of 13.1578.
The Krona dived versus its peers on Thursday after Sweden’s central bank cut the cash rate unexpectedly from -0.25% to -0.35%. Riksbank also expanded its bond-purchasing programme to the end of the year as geopolitical tensions in Greece raise the potential for increased Krona appreciation. What’s more, the bank is prepared to continue easing policy if necessary. The bank said it has ‘a high level of preparedness’ to add stimulus and reiterated it can ‘intervene on the foreign exchange market if the upturn in inflation is threatened as the result of, for instance, a very problematic development in the markets.’
‘Inflation is rising and economic activity in Sweden is continuing to strengthen,’ the bank said. ‘But uncertainty abroad has increased and it is difficult to assess the consequences of the situation in Greece. Since the repo-rate decision in April, the Krona has also become stronger than the Riksbank had forecast and the development of the exchange rate remains a risk to the upturn in inflation.’
The Pound Sterling to Swedish Krona (GBP/SEK) exchange rate was trending within the region of 13.0062 – 13.2061.