01 Dec 2020 14:31
GBP/NOK is one of the popular currency pairs on Forex. Norway is actively trading with the UK, which is the largest business partner of the country. For this reason, the GBP/NOK pair is preferred by experienced traders who choose this trading instrument as the economies of the euro area and Norway remain stable and predictable. The most intense bidding on a specific financial instrument is observed during the work time of the European stock exchanges.
GBP/NOK is the cross rate against the US dollar. Although the US dollar obviously is not in this currency pair, it still has a significant influence on the rate of the pair. This can be seen if you combine the charts of the GBP/USD and USD/NOK pairs, thus, you can get an approximate GBP/NOK chart.
The US dollar has a significant impact on both currencies. For this reason it is necessary to take into account the major US economic indicators in order to predict correctly a future course of this financial instrument. These indicators are as follows: the discount rate, GDP, unemployment rate, Non-Farm Payrolls, etc. It is necessary to note that discussed currencies could respond with different speed to changes in the US economy. Therefore, the GBP/NOK currency pair may be a specific indicator of these currencies fluctuations.
Norway is one of a highly developed, stable democracies with a modern economy. The country occupies the first positions on such economic indicators as quality of life and personal income level. Norway is the third largest producer and exporter of oil and gas. The main source of income of this Scandinavian country is the export of energy resources. In addition, Norway is the leading country in electrometallurgy, electrical engineering, mechanical engineering, etc. In addition, the Norwegian industry is a leading manufacturer of offshore drilling platforms for oil and gas. Also, Norway is a leader in mining and processing of a great variety of seafood, which are in high demand worldwide, especially in the European countries.
If you trade cross rates, it is necessary to remember that brokers usually set a higher spread than on more popular currency pairs, so before you start working with the cross rates, one should carefully read and understand terms and conditions offered by the broker to trade with specified trading instrument.