Pound Norwegian Krone (GBP/NOK) Exchange Rate Rises as Boris Johnson Succeeds Theresa May as PM

July 23, 2019 - Written by John Cameron

STORY LINK Pound Norwegian Krone (GBP/NOK) Exchange Rate Rises as Boris Johnson Succeeds Theresa May as PM

GBP/NOK Exchange Rate Increases despite Brexit Jitters on New PM Announcement

The Pound Norwegian Krone (GBP/NOK) exchange rate exchange rose today, leaving the pairing fluctuating around 10.811.

The Pound (GBP) edged higher against the Norwegian Krone (NOK) following the announcement that Boris Johnson, the former Foreign Secretary, would succeed Theresa May as the next Prime Minister of the UK.

Boris Johnson won against Jeremy Hunt, the Foreign Secretary, by a 66% majority.

Mr Johnson promised in his speech following the announcement that the Conservative Party would now focus on delivering Brexit, uniting the country and to ‘defeat Jeremy Corbyn’.

He also said during his speech:

‘Today, at this pivotal moment in our history, we again have to reconcile two noble sets of instincts – between the deep desire for friendship and free trade and mutual support and security and defence between Britain and our European partners; and the simultaneous desire, equally heartfelt, for democratic self-government in this country.’

However, some Sterling traders have become jittery as Mr Johnson is a known Brexiter, previously promising that the UK would leave the European Union on 31 October – ‘do or die’.

NOK/GBP Exchange Rate Sinks as Norwegian Industrial Confidence Falls below Forecast

The Norwegian Krone (NOK), meanwhile, weakened following this morning’s publication of the Norwegian industrial confidence figures for the second quarter.

These fell below the forecast increase of 6.8 to 5.6.

These figures have caused some Norwegian Krone traders to become disappointed in the increasing signs of a slowing economy.

As a result, the Norwegian Krone plummeted to a 2-week low today, leaving NOK traders feeling jittery.

NOK/GBP Outlook:

Pound traders will be focusing on political developments following from Boris Johnson’s new appointment as Prime Minister.

Any further indications of a hard-Brexit stance coming from Mr Johnson and his cabinet, however, could begin to weigh on market confidence in Sterling.

Tomorrow will also see the release of the UK BBA mortgage approvals figures for June.

If these improve, it could provide some minor uplift for the GBP/NOK exchange rate as the UK’s economy appears to be faring well despite increasing uncertainty over the UK’s future with the EU.

NOK traders, however, will be looking ahead to Thursday’s printing of the Norwegian Labour Force Survey figures for May.

These are expected to increase from 3.2% to 3.3%.

The GBP/NOK exchange rate will likely become volatile this week as political developments are due to rapidly unfold surrounding the newly appointed Boris Johnson PM as well as on increased Brexit uncertainty.

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TAGS: Norwegian Krone Forecasts Pound Norwegian Krone Forecasts