The Fed is in blackout; the only notable release from the US is the services ISM. Elsewhere, China inflation metrics, and policy announcements from the BoC and RBA will be eyed.
February 10, 2021 - Written by Frank Davies
Leap in Norwegian Inflation Drags Pound Norwegian Krone Exchange Rate Lower
The Pound to Norwegian Krone (GBP/NOK) exchange rate remained under pressure thanks to an unexpectedly strong uptick in January’s Norwegian inflation rate.
While forecasts had pointed towards the inflation rate rising from 1.4% to 1.7% on the year investors were caught off guard as the figure instead surged to 2.5%.
This sharp increase in inflationary pressure could give the Norges Bank greater cause for confidence going forward, raising the potential for monetary tightening measures in the months ahead.
As the oil market also held onto a positive footing over the course of the day this helped to shore up the Norwegian Krone further, leaving the GBP/NOK exchange rate trending lower.