Pound Sterling / Norwegian Krone - GBP/NOK

The fluctuations of the GBP/NOK cross should a priori reflect the structural dependence of the external value of the Norwegian currency in relation with the level of the world oil rates, as oil production represents an important part of the Norwegian GDP.

The United Kingdom is also an important oil producer, so this structural definition has less effect on the fluctuation of the GBP/NOK cross than on other crosses which imply the Norwegian Krone on the Forex.

With an exchange value equal to GBP/NOK = 11,75 at the beginning of Janaury 2005, the cross is slowly decreasing until the first quarter of 2006 (GBP/NOK = 11,025), before increasing fast until a higher of GBP/NOK = 12,4 reached in September 2006.

An appreciation of the Norwegian Krone against the Pound sterling happened then along the year 2007, and this appreciation accelerated at the beginning of 2008.

Parallel to the decrease of the main crosses GBP/USD and GBP/EUR (increase of the official cross EUR/GBP) that happened on the same period on the Forex, the GBP/NOK cross decreased until the exchange value GBP/NOK = 9,8 observed in May 2008 (-20% in a year and a half).

Then there seemed to be a recovery of the pound sterling until September 2008 (GBP/NOK = 11,25 in September 2008, the cross recovered by 15% in few months), before the Pound sterling decreased again in the context of the worsening of the world financial and stock-exchange crisis of the fall 2008.

The GBP/NOK cross reached a first lower at GBP/NOK = 9,6 in March 2009, then a recovery of the pound (GBP/NOK = 10,5 in June 2009) is compensated again against the Norwegian Krone but also against the US dollar and the euro: the pound did not really regain the lost ground, and it is even a new lower (the higher of the Norwegian Krone) that is reached mid-January 2010: we had  on the Forex GBP/NOK = 9,1908 on January 14th, 2010.