GBPNOK – Krone buoyed by rising crude prices

The recent rise in oil prices is making the Norwegian currency more attractive. In particular, GBPNOK is reversing the multi-month rally (Sterling strong, now weakening). Two macro factors are helping to fuel crude oil’s rally: a) a sustained political disturbance in Iran, which is a big oil producer, and b) good economic growth data from big economic blocs such as US, EU, and China.
With oil prices trading around $70 a barrel, the Krone will have tailwinds behind it. The rate broke the short-term floor at 11.0 to trade to end last week at 10.92. The next floor is noted at 10.8.