GBP/NOK Outlook:
The GBP/NOK rate is currently below its recent average and has recently traded near its lows. This weak position is influenced by the UK's cautious economic outlook as key data releases are expected.
Key drivers:
• Rate gap: The Bank of England has maintained interest rates, creating a divergence from Norway's cautious approach under Norges Bank.
• Risk/commodities: Higher oil prices have supported the NOK, as Norway's economy benefits directly from its oil sector.
• One macro factor: The upcoming UK jobs report may reveal signs of a slowing labor market, which could pressure the GBP further.
Range:
Expect the GBP/NOK to hold within its recent 3-month range, lacking significant momentum in either direction.
What could change it:
• Upside risk: A stronger-than-expected jobs report from the UK could support the GBP.
• Downside risk: Continued weak labor data may push the GBP lower against the NOK.