Norwegian Krone Exchange Rate (NOK) & Canadian Dollar (CAD) Forecast To Slump On Iran Nuclear / Oil Deal

November 25, 2013 - Written by David Woodsmith

STORY LINK Norwegian Krone Exchange Rate (NOK) & Canadian Dollar (CAD) Forecast To Slump On Iran Nuclear / Oil Deal

The Pound to Norwegian Krone exchange rate (GBP/NOK) is currently trading up by 0.73% at 9.9120 GBP/NOK. The Norwegian Krone to Pound exchange rate is currently trading at 0.1009 NOK/GBP.

Oil-dependent currencies have given up ground against the remainder of the other majors so far today following news of an accord between Iran and the world’s developed nations. Stringent sanctions have been enforced on the pariah Persian state in recent years, meaning that Iranian exports of black gold were severely curtailed. The harsh restrictions on the Tehran leadership by the international community were driven by the West’s concerns over Iran’s ongoing nuclear activities. Today’s news that Tehran has signed an agreement ceasing a significant number of its nuclear-related activities, allowing it to trade more of its oil on world markets, has sent the price of a barrel of crude tumbling by over 2.00% in early trading.

Pound Canadian Dollar Exchange Rate Sees New Multi-year High of 1.7157 GBP/CAD

The downshift in oil prices on the day has set the Pound Canadian Dollar exchange rate (GBP/CAD) up to a new multi-year high of 1.7157 during the early part of today’s trading session. Meanwhile, the fact that Iran, which is the fourth largest global oil producing nation, is back in the game, has also hurt the Norwegian Krone, sending GBP NOK upwards by over 1.00% to 9.9288 earlier. Meanwhile, the US Dollar has clawed back some of last week’s losses against Sterling on the day, sending GBP USD down to 1.6155 during the middle part of the European equities session. The US economy remains the world’s largest net importer of oil, so the downward price move spelled good news for the American economy.

A strong set of US Pending Home Sales for last month, due for publication shortly, could trigger further downside for GBP USD and would be likely to have a similar effect on the GBP CAD exchange rate. However, the primary near-term risk event for both the Canadian and US Dollars comes tomorrow afternoon in the form of this month’s US Consumer Confidence survey, which has the potential to provoke significant market movement.

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