GBP/NOK attempted to break a seven-day string of losses in light Asian trade on Wednesday, after touching a fresh two-month low of 11.4972 on December 24th. In early trade, on the foreign exchange market, the GBP/NOK exchange rate was seen quoted within a range of 11.5759 and 11.5542.
The Pound gains achieved after Boris Johnson’s Conservative Party won a majority in the UK general election on December 12th are now erased, while the possibility of a hard Brexit scenario in the upcoming months has triggered a further retreat of the British currency.
“We suspect that the bulls have pared their positions amid the buy the rumor sell the fact activity since the election,” Marc Chandler, chief market strategist at Bannockburn Global Forex in New York, stated in a note to clients.
The spread between 2-year Norwegian and 2-year UK bond yields, which reflects the flow of funds in a short term, shrank to 0.736% (73.6 basis points) on December 25th from 0.740% (74.0 basis points) on December 24th.
From a macroeconomic perspective, the United Kingdom and Norway are not scheduled to release any relevant reports today.
NOK currency traders now expect the monthly report on retail sales at the start of next week for clues over consumption trends in Norway. GBP/NOK was up 0.12% to 11.5607 in early Asian session on Thursday.
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