GBP/NOK Exchange Rate Steadies on Improving Norwegian Retail Sales
The Pound Norwegian Krona (GBP/NOK) exchange rate is rangebound today and is currently trading around 11.215kr on the inter-bank market.
The Norwegian Krona (NOK) steadied against the Pound (GBP) despite encouraging Norwegian retail sales figures for March, which came in on the forecast improvement of 0.6%.
Today also saw the printing of the Norwegian Labour Force Survey figures for February, which held steady at 3.8%.
With Norwegian economy so closely tied to the Eurozone’s – due to being a major importer – today’s French trade figures have knocked confidence in the economy.
Lorenzo Codogno, a Chief Economist at LC Macro Advisors, gloomily stated that there is ‘no turning point’ for the Eurozone economy in the near term, which has weighed on positive sentiment in the Norwegians Krona.
GBP/NOK Exchange Rate Steadies as UK Consumer Confidence Remains Static
The Pound, meanwhile, was left generally unmoved despite the UK GfK Consumer Confidence figures for April today, which held steady at -13.
Joe Staton, a Client Strategy Director at GfK, commented:
‘Despite political carry-on in the Westminster bubble with the clock ticking on Britain’s eventual departure from the EU, consumers are holding firm and remain unshaken by the daily headlines of turmoil and intrigue, although we remain in negative territory.’
In Brexit news meanwhile, concerns have been rising over cross-party talks, which are continuing to run into difficulty.
The Foreign Secretary, Jeremy Hunt, has also said that the Tories would not accept a compromise over involving a custom’s union.
The Pound has benefited from Labour’s increasing willingness to discuss a ‘confirmatory ballot’ – or second-referendum – for Brexit, which has brought some relief to some Pound traders as it heightens the likelihood of the UK remaining in the EU.
Sue Hayman, Labour’s Shadow Environment Secretary, commented that cross-party talks had been ‘really constructive’, with both parties getting to the ‘nuts and bolts of the detail’ over a possible withdrawal agreement.
GBP/NOK Outlook: Sterling Could Rise if Cross-Party Talks Improve
Tomorrow is a bank holiday for Norway for Labour Day, so there will be no economic data releases.
However, with many NOK trader’s focus being on the Eurozone, any comments from Luis De Guindos, the Vice-President of the European Central Bank, that indicate a dovish stance on monetary policy could weaken the NOK/GBP exchange rate.
Pound traders, however, will be awaiting the release of tomorrow’s Markit Manufacturing PMI figures for April, which are expected to ease.
These will be followed by the UK’s mortgage approvals figures for March.
The GBP/NOK exchange rate will likely remain sensitive to Brexit developments, and with cross-party talks showing increasing signs of a new direction, any breakthrough could see the Pound buoy if the stalemate is broken.