GBP/NOK settles below 1-month high, posts weekly gain

The GBP/NOK currency pair settled below recent high of 14.1157, its strongest level since March 5th, after stronger-than-expected UK GDP growth and Norway’s CPI data.

The UK economy grew 0.5% month-over-month in February, following zero growth in January. It has been the strongest monthly GDP increase since March 2024. Market consensus had pointed to a 0.1% growth.

Yet, Pound gains seemed limited as tariff developments will likely shape the outlook for the economy.

The Trump administration announced this week a 90-day pause on tariffs that exceed the 10% baseline for most of the United States’ trade partners.

However, the United Kingdom and many other US trade partners will still be subject to the baseline tariff of 10%.

Prior to the tariff pause, there had been growing concerns about the potential economic repercussions for the UK, given the importance of its trading relationship with the United States.

UK’s trade deficit in goods has increased to GBP 20.81 billion in February from GBP 18.22 billion in January, data by the Office for National Statistics showed.

Meanwhile, the latest data out of Norway showed that annual consumer price inflation had eased to 2.6% in March from a ten-month high of 3.6% in February.

Norway’s annual inflation adjusted for tax changes and excluding energy products (CPI-ATE) remained steady at 3.4% in March – or the highest rate since June 2024.

The GBP/NOK currency pair settled 0.62% lower at 13.9403 on Friday.

The exotic Forex pair gained 0.42% for the week.