GBP/NOK Outlook: Slightly weaker, but likely to move sideways, given its position just below the 90-day average and trading near the middle of its recent range.
Key drivers:
- The Bank of England has indicated cautious monetary policy, which is providing limited support for the British Pound compared to the Norwegian Krone.
- Recent oil prices are elevated, trading above their average, which can bolster the krone as Norway is a significant oil exporter.
- Global trade tensions, including US tariffs, may negatively impact the UK's GDP and consumer spending, weighing on the pound.
Range: GBP/NOK is likely to drift within its recent 3.5% range, showing limited volatility in the short term.
What could change it:
- An improvement in UK economic data could strengthen the pound and push it higher.
- A significant drop in oil prices could weaken the krone and lead to more GBP strength.