Today's Exchange Rate News for the Rand (ZAR), Norwegian Krone (NOK), Swedish Krona (SEK) and the Danish Krone (DKK)
British Pound hits Fortnightly High against Norwegian Krone (GBP-NOK) as Chinese Investment Boosts Support for Sterling
The British Pound gained across the board in response to hawkish Bank of England (BoE) interest rate hike speculation. During the European session GBP advanced on NOK, SEK, DKK and ZAR, as well as hitting a one-month high against the Euro and holding steady against the US Dollar.
Earlier...
The Pound Sterling has risen substantially against the Norwegian Krone today, seeing a high of 12.7479. This has come from a massive amount of support for the Pound being generated by Chancellor George Osborne’s current 5-day visit to China.
The Chancellor has secured over 50 economic agreements with the Asian superpower, the most notable of which is a £2bn investment in the Hinkley Point C Power Station. Construction had previously stalled due to a want of funds, but it is thought that this financial measure, among others, will revitalise the UK economy significantly.
A quick foreign exchange market summary before we bring you the rest of the report:
The NOK has benefitted recently from the price of crude oil rising since September 18th from below $45.00 per barrel to almost $46.00 today. This week, the Norwegian Krone is expected to be moved in the pairing by the Unemployment Rate for July (out on Wednesday) and the Norges Bank Interest Rate Decision on Thursday.
Pound Sterling reaches a Weekly Best Rate against the Swedish Krona (GBP-SEK) as Little Movement Predicted for Swedish Economic Confidence
The Pound Sterling has advanced to 12.9336 against the Swedish Krona today, although this currently advantageous position may not last the entirety of the week. This is primarily because the Pound is suffering from a distinct shortage of UK economic publications this week, and those high-profile ones that are due for release may do more harm than good to Sterling. These negative results are chiefly composed of the Public Sector Net Borrowing figure for August, as well as the PSNB Excluding Banking Groups. Both results have been forecast for growth, which in this case will mean an expansion of current UK debt.
For the Krona, the biggest news of the week will be on Thursday morning with the release of the Consumer and Business Confidence scores for September and the monthly and annual PPIs for August. Fractional drops have been predicted for the former figures while negative percentages are expected in the latter.
Rand Exchange Rate Forecast: ANC Document Hints at Social and Economic Division for South Africa in the Future
The Pound Sterling to South African Rand conversion rate has posted at 20.8550 today and remains close to its best level against the Rand in over 10 years. The Pound has had the advantage of fluctuating gold and platinum prices on its side, as well as the potentially disastrous news for the Rand that the South African government intends to unify the country economically with China and Russia, in turn shutting out much of the Western nations from trade and investment.
A document by the African National Congress (ANC) party, headed by President Jacob Zuma, described China’s economy as one that ‘has heralded a new dawn of hope for further possibilities of a new world order’ and that ‘[China] is gradually redefining the world towards a multipolar order’. Dr Frans Cronje of the Institute of Race Relations was heavily critical of the apparent proposals, saying: ‘This is economically short-sighted as we are placing all our foreign policy economic eggs in the Sino/Russo economic basket at a time when the prospects for China’s economy are in doubt and Russia is in much economic trouble’.
This week, South African Rand movement will be determined by the Inflation Rate data for August, the PPIs for August and the South African Reserve Bank (SARB) Interest Rate Decision, all out on Wednesday.
Drop in Danish Confidence set to Widen GBP-DKK Exchange Rate along with Predicted Retail Sales Slowdown
The Pound Sterling has hit a high of 10.3404 in the Danish Krone conversion rate today, a figure not seen since the middle of August. The Pound has made this gain thanks to a dwindling confidence in the Euro, which the Danish Krone is strongly tied with. This decline has come in part from a statement by Eugenio Gaiotti, the Chief Economist of the Bank of Italy, who has warned that the European Central Bank (ECB) must avoid slipping into deflation by adopting a ‘decisively supportive monetary stance’.
The DKK has drawn the short straw this week when it comes to results; the only announcements due are a forecast-to-be declining Consumer Confidence score for September and the Retail Sales data for August, which is also predicted to drop.