GBP/NOK: Sterling Comes Under Pressure on Soft Retail Sales and Brexit Developments

  • 7:00AM BST, British pound traded at 11.7765 against the Norwegian krone
  • A soft UK retail sales report for October, which came in at -0.1%, has also put some downward pressure on the pair. Market expectations were set at a 0.2%

The Norwegian krone recovered some ground against sterling in yesterday’s trade as soft retail sales data and Brexit concerns kept weighing on the pound.

With less than one month to go until the December election, there are still many uncertainties around the fate of Brexit. Labour leader Jeremy Corbyn promised to hold another referendum over the divorce deal with the EU, while Boris Johnson said he will get Brexit done by end of January.

Brexit Party’s leader Nigel Farage, who said on Monday he won’t fight the Conservatives at the election — a decision that supported the British pound over the week — rejected to stand down more candidates on Thursday. While most polls show that the Conservatives are comfortably ahead of the Labours, Farage’s decision has likely put some selling pressure on sterling during the Asian session, which hit an intraday low 11.7684 against the Norwegian krone.

A soft UK retail sales report for October, which came in at -0.1%, has also put some downward pressure on the pair. Market expectations were set at a 0.2% rise. Slightly higher energy prices have been beneficial for the krone.

With no important market reports scheduled for today, headline risks and Brexit news will likely continue to drive the pair.

From a technical standpoint, the GBP/NOK pair faced some resistance at the broken trendline which aligns with the 61.8% Fib, drawn from the November 1 open to the November 8 close.

While the weekly high of 11.8559 could provide fresh selling pressure, there’s no meaningful support before November 8 low of 11.66. As of 7:00 a.m. London time, the British pound traded at 11.7765 against the Norwegian krone.


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