The Pound Norwegian Krone (GBP/NOK) exchange rate is strengthening today despite a softening in the latest Markit services PMI from the UK.
The GBP/NOK pairing are currently trending around the 12.273kr level as the Norwegian Krone is unable to find much headwind on an absence of economic data from Norway.
Pound (GBP) Supported by UK Services PMI Data
The Pound (GBP) has found support against the Norwegian Krone (NOK) today as the UK services PMI softened less-than-expected.
Tim Moore, Economics Director at IHS Markit, commented on the latest PMI for the services sector, saying:
‘July data illustrates that recovery speed across the UK economy has slowed in comparison to the second quarter of 2021. More businesses are experiencing growth constraints from supply shortages of labour and materials, while on the demand side we’ve already seen the peak phase of pent up consumer spending.’
‘The full easing of pandemic restrictions appears to have helped limit the overall loss of momentum towards the end of July. At 59.6, the PMI reading for services output was much stronger than our earlier ‘flash’ figure of 57.8 in July, largely due to the final index covering an extra five working days since ‘freedom day’.’
Investors remain optimistic surrounding the UK’s economic recovery from coronavirus as daily cases of the virus continue to fall across the country.
Norwegian Krone (NOK) Limited on Lack of Economic Data
The Norwegian Krone (NOK) has been limited in its movement today as a lack of economic data from Norway did nothing to support the currency.
Norway remains under lockdown measures which have been delayed twice as the country records upwards of 300 new cases of coronavirus a day.
Health Minister Bent Hoeie announced the further delay, saying: ‘A new assessment will be made in mid-August.’
Whilst Norway has been relatively unscathed from coronavirus, recording less than 1000 deaths, the country remains concerned over the delta variant of the virus.
Pound Norwegian Krone Exchange Rate Outlook: Bank of England Interest Rate Decision in Focus
For Pound investors, tomorrow the main catalyst for movement in GBP exchange rates will be the latest interest rate decision from the Bank of England (BoE).
Whilst no policy changes are expected from the bank, all eyes will focus on the tone the bank chooses to take moving forward.
Norwegian unemployment rate figures for Q2 could tomorrow cause movement in the NOK exchange rates.