Norwegian Krone: Below-Forecast Data Sends GBP/NOK Exchange Rate Higher

March 8, 2015 - Written by Toni Johnson

STORY LINK Norwegian Krone: Below-Forecast Data Sends GBP/NOK Exchange Rate Higher

The Pound Sterling to Norwegian Krone exchange rate advanced more than 0.50 per cent on Friday as domestic data out of the Scandinavian nation came in below forecasts and as analysts continue to speculate that oil prices will remain weak until the third quarter of 2015.

The Norwegian currency fell to a 1-day low against the Pound (NOK/GBP) and touched a session low of 0.5837 as data released by Statistics Norway showed that industrial production in the nation fell in January, partially reversing the strong rise in production seen in the final month of last year.

The data showed that industrial production fell by a seasonally adjusted figure of 0.4% on an annual basis in January. The drop takes some of the edge off the 3.5% gain seen in December. On a monthly basis, industrial production fell a seasonally adjusted level of 3%, wiping out the 0.2% rise seen in the preceding month. The number was also far worse than the -0.07% forecast by economists.

NOK Exchange Rates Today (8th March 2015)

The Norwegian Krone to Australian Dollar exchange rate converts at 1 NOK is 0.16391 AUD.
The Norwegian Krone to Canadian Dollar exchange rate today is converting at 0.15963 NOK/CAD.
The Norwegian Krone to Euro exchange rate is 1 NOK equals 0.11663 EUR.
The Norwegian Krone to Pound Sterling exchange rate is 1 NOK equals 0.08410 GBP.
The Norwegian Krone to New Zealand Dollar conversion rate is 0.17173 NOK/NZD.
The Norwegian Krone to US Dollar exchange rate today is converting at 0.12646 NOK/USD.

GBP/NOK Surges on Poor Norwegian Manufacturing

Also released was a separate manufacturing production report which showed that on annual basis production declined by -0.2% after rising strongly by 4.4% in the preceding month.

Manufacturing output plunged 3.7% monthly in January, reversing a 1.3% increase in the preceding month. Economists had forecast a 0.2% drop for the month.

The Pound Sterling (GBP) advanced even as a domestic report showed that the British public’s inflation expectations fell to a 13-year low.

The report shows that Brits expect that prices will rise by 1.9% over the coming year, the lowest level since 2001. The report also showed that most Brits do not expect an interest rate rise to occur until next year.

The impacts of falling oil prices have played a large part on the weakness of the Norwegian Krone exchange rate in recent weeks but there is set to be light at the end of the tunnel.

The International Energy Agency (IEA) said that it expects oil prices to increase sharply in the third quarter of the year as demand for the commodity is expected to rise sharply.

Demand from Asia is rising and is showing signs of influencing supplies in the USA and Saudi Arabia has said that Asian demand is an encouraging sign for prices.

In the long term, the Krone is forecast to begin to rally against its major later in the year. Conflicts in Libya and the Middle East are also likely to send prices higher as they intensify.

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TAGS: Currency Predictions Daily Currency Updates Norw Forecasts