Pound Sterling to Norwegian Krone Exchange Rate Today: GBP NOK Spikes Despite GDP Data

February 12, 2015 - Written by John Cameron

STORY LINK Pound Sterling to Norwegian Krone Exchange Rate Today: GBP NOK Spikes Despite GDP Data

There was bad news for the Commodity Dollars early yesterday when leading credit ratings agency Moody’s forecast that the near-term drop in global oil prices will fail to give the global economy a ‘significant boost’.

Moody’s issued a report predicting that the benefit in the drop in the price of a barrel of crude oil since the middle part of last year for nations like Australia, Canada and New Zealand, will be more than cancelled out by underperformance in the euroland, Japan, China and Russia. The credit ratings agency went on to confirm that, because of the neutralising effect of the marked slowdown in global activity, the downward move in oil prices would not allow it to alter its current forecast for 2015 GDP growth across the developed world.

The news hit the Norwegian Krone (currency:NOK) particularly hard on the day, sending the Pound Sterling Krone exchange rate up by 1.0% to an intraday high of 11.6588 during the European afternoon session. Analysts had been expecting a better performance from the Norwegian tender following the release of official government statistics which revealed that the Norwegian economy had expanded at a faster rate than was previously estimated during 2014.

The big issue hanging over the currency markets during yesterday’s session was undoubtedly the appearance of Greece’s new policymakers in front of the eurogroup of Finance Ministers in Brussels. The euroland’s policymakers had plenty to say about the request from Athens to alter the terms of its existing bailout agreement. Ireland’s Finance Minister Noonan sided with the Hellenic representation, stating that, ‘Greece needs program to seek bridge financing; Greece talks must start with new or extended programs.’ France’s FinMin Sapin took a more even-handed view of events, stating that the, ‘EU must respect the Greek vote outcome; Greece has to respect EU rules, commitments.’

Meanwhile, Germany’s policymakers continued to take a predictably hardline approach to the ‘Greek Problem’, with the Teutonic Finance Minister Schaeuble confirming that he didn’t expect a result on Greece yesterday and stating clearly that, ‘it's up to Greece to stay in program or not.’ If it comes down to such a black and white choice, then Greece will be forced out of the eurozone, leading to a major sell-off of euro-denominated assets.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Norwegian Forecasts