GBP/NOK: Pound Gives Back Gains Despite Services PMI Beat, Markets Eye Trade Talks Later This Week

The British pound traded mostly lower against the Norwegian krone during the Asian session, giving back yesterday’s gains on a better-than-expected activity in the services sector.

The UK final services PMI came in at 50.0 for December, beating forecasts of 49.1 and higher than last month’s reading of 49.3. Improving order books, a strong rise in new work, and a rebound in business optimism to the highest level in 15 months signaled stabilization in the service sector in the latest survey period.

While most UK market reports are still weak, future market expectations have risen after PM Johnson secured an overwhelming majority in the Parliament. 

Boris Johnson is expected to host the President of the EC, Ursula von der Leyen in London on Wednesday, which will likely mark the beginning of trade negotiations between the UK and the EU. 

While any progress in the talks will likely boost the British pound during the week, the risk of a “no deal” Brexit could still weigh on the currency. There are only 11 months to reach a trade deal that took 7 years of negotiations between Canada and the EU.

Brent crude started to give back gains after reaching a high of $71.60 on rising tensions in the Middle East. Falling energy prices could be negative for the krone which traded at 11.57 against the British pound, as of 7:00 a.m. London time.

The GBP/NOK pair has been trading in a ranging market since the New Year eve, with a strong resistance forming around the 11.65 level. That level aligns with the November 10 low and has already provided selling pressure for the pair on January 02.

To the downside, the lower 11.51s could host a number of buying orders and act as a support for the pair. 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.