Swiss Franc (CHF), Norwegian Krone (NOK) Exchange Rate Forecast: Swiss Inflation Data Ahead
Swiss Franc (CHF) Exchange Rate Forecast
On Monday the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trading in the region of 1.5440, down slightly on the day’s opening levels. While the Pound was hindered by adverse commentary regarding the impact of its strength on the UK’s economic outlook, the Franc was trending in a narrow range thanks to a lack of domestic data.
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The Franc was also trending lower against the Euro in spite of Germany releasing concerning Factory Order and retail index data.
Sterling slumped against almost all of its currency counterparts as economists bet that the pace of UK growth has slowed and Business Secretary Vince Cable called the Pound overvalued by between 10-15%.
Economic reports from Switzerland were sparse yesterday, but there are several high-profile data releases to be aware of in the days ahead.
Later today investors with an interest in the Swiss Franc will be focusing on Swiss inflation data for September and domestic retail sales figures.
Economists have forecast that inflation increased by 0.1% on a month-on-month basis in September after stagnating in August.
It is believed that Swiss retail sales climbed by 1% in August, year-on-year – wiping out the annual decline of -0.6% recorded in August.
Positive Swiss data could help the Franc advance on the Pound.
The GBP/CHF exchanged rate may also be driven by the UK’s reports, including Manufacturing/Industrial production figures.
Norwegian Krone (NOK) Exchange Rate Forecast
The week began fairly quietly for the Norwegian Krone, with the GBP/NOK exchange rate trending in a narrow range.
The Pound eased to a low of 10.3730 against its Norwegian counterpart as economic reports were lacking and investors reacted to Sterling’s ‘overvaluation’.
The Norwegian Krone was able to strengthen against the Euro as the level of German Factory Orders fell by a seasonally adjusted -5.7% in August, month-on-month, decimating expectations for a decline of just -2.5%.
The NOK/USD exchange rate also rallied on Monday amid a dearth of US economic reports and conflicting Federal Reserve interest rate hike speculation.
During today’s European session the Norwegian Krone could experience movement in response to domestic Manufacturing and Industrial Production figures.
It is expected that industrial production fell by -0.9% on the month in August following the -0.6% decline registered in July. Manufacturing Production is believed to be up 1.9% on the year, a slower pace of annual growth than the 2.9% registered the previous month.
An upward surprise could boost the Krone and see the GBP/NOK exchange rate falter.
Towards the close of the week Norway is due to publish its inflation rate stats and Producer Price Index, both of which could have an influence on the direction taken by the Norwegian Krone.