The Pound to Norwegian Krone (GBP/NOK) exchange rate strengthened as Norwegian economic data disappointed, the Pound to Swedish Krona (GBP/SEK) exchange rate eased away from a five year high as Economic sentiment in the Scandinavian nation rose unexpectedly.
According to Statistics Norway, retail sales declined unexpectedly in September by 0.1% month on month, down from the 0.6% rise seen in August. Economists had expected retail sales to increase at a faster rate of 0.7%. The cause for the drop was mounting concerns over the Eurozone economy.
On an annual basis, retail sales climbed by 1% in September adding to the 1.9% rise recorded in the previous month.
A separate report also showed that the level of household consumption in Norway declined by 1.5% on a monthly basis in September, a sharp decline from the 1.7% growth seen in August.
Also weighing upon the Norwegian Krone was the release of the latest unemployment data for Norway. The report published by Statistics Norway showed that the nation’s jobless rate increased more than forecast in August.
The nation’s jobless rate increased to 3.7% in August, up from the 3.2% figure seen in May. Economists had been forecasting for a figure of around 3.5%. On a seasonally adjusted basis the nation’s unemployment figure increased by 14,000 with the number of employed falling by 2,000.
After the Riksbank surprised the markets by slashing interest rates to zero on Tuesday the Krona fell sharply against all of its major peers. Data published on Wednesday offered some support.
The Pound softened slightly against the Swedish Krona after a report released by the National Institute of Economic Research showed that economic sentiment in the country increased unexpectedly.
The data showed that confidence in the manufacturing sector increased in October but consumer confidence fell more than forecast. The total industry confidence index advanced to 105.8 from the previous reading of 102.3.
Exchange Rate Forecast
Market attention is focused on the evenings US Federal Reserve Policy Meeting statement, which is expected to show that policy makers will announce an ending of the Fed’s monthly quantitative easing, programme.
Expectations for an interest rate rise however have been scaled back with some economists forecasting that a rate hike will not occur until the later part of 2015.
Depending on how dovish the statement turns out to be it will have a major impact upon most major currencies.
The next major data releases due for the Norwegian Krone and Swedish Krona will be next Monday’s Manufacturing PMI reports.
Norwegian Krone (NOK) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Norwegian Krone,10.7240 ,
Euro,, Norwegian Krone,8.4751 ,
US Dollar,, Norwegian Krone,6.6547 ,
Swedish Krona Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,,Swedish Krona,11.8101 ,
Euro,,Swedish Krona,9.3317 ,
US Dollar,,Swedish krona,7.3281 ,
[/table]
