GBP/NOK: Sterling Continues Bull Run Against the Krone as Polls Show Better Outlook for Tories

With only eight days to go until the general election, the British pound soared to its highest post-Brexit level against the Norwegian krone. Markets are becoming increasingly confident that Boris Johnson’s Conservative Party will win a majority in the Parliament and deliver on his Brexit promise.

According to latest polls, Corbyn’s Labour Party failed to further narrow the gap to the ruling Tories, and the Royal Bank of Canada now sees a 60% chance of a Conservative win at the elections next week.

Markets are preferring Johnson’s market-friendly policies and the Brexit certainty that comes with a Conservative majority. In contrast, a Labour-led coalition would likely lead to a second Brexit referendum and the nationalizing of industries, including water, railways, the energy sector, and even broadband internet.

Yesterday’s UK Final Services PMI showed a renewed drop in the service sector activity in November, with the pace of decline the fastest since March. The report came in at 49.3, down from the October reading of 50.0 and matching expectations of a 0.1% quarterly economic contraction as a whole.

There are no data reports of note from the UK and Norway today and lower oil prices could put additional selling pressure on the krone throughout the day.

From a technical standpoint, the recent upturn in the GBP/NOK pair looks quite overstretched with the daily RSI forming a bearish divergence between the indicator and the price.

The pair reached the upper channel resistance of a one-month rising channel, which may send the price lower in the short run. Nevertheless, the pair looks well-supported above the 11.90-11.95 range for the time being. As of 7:15 a.m. London time, one British pound bought 12.0170 Norwegian krones. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.