GBP/NOK retreated for a seventh consecutive trading session on Tuesday as uncertainty after Britain’s official departure from the EU in January reemerged. Market players seem to be concerned that the country could part ways with the bloc without any trade deal, as British Prime Minister Boris Johnson indicated no trade talks extension beyond December 2020.
On the foreign exchange market, GBP to NOK exchange rate inched lower, touching a fresh 10-weeks high settling at 11.5292, registering a +0.49% gain. During Tuesday’s trading session, currency traders saw GBP/SEK exchange rate quoted within a tight trading range of 11.6069 — 11.5086.
On the macroeconomic front, no volatility-inducing reports to affect the exotic pair are scheduled for this week. Therefore, investors are likely to abstain from data-driven decisions in holiday-thinned trade. The spread between 2-year Norwegian and 2-year UK bond yields, which reflects the flow of funds in a short term, expanded to 0.740% (74.0 basis points) on December 24th from 0.721% (72.1 basis points) on December 23rd.
Major Forex trading centers such as Australia, New Zealand, Singapore, Hong Kong, London and New York will remain closed on Wednesday for the Christmas Day holiday. Tokyo will be open for business, but trading volumes are expected to be exceptionally light.
GBP/NOK was up 0.20% to 11.5524 in late Asian session on Wednesday.
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