Pound Sterling Canadian Dollar & Norwegian Krone Forecasts Up after IMF Comments

May 12, 2016 - Written by Minesh Chaudhari

STORY LINK Pound Sterling Canadian Dollar & Norwegian Krone Forecasts Up after IMF Comments

Sterling has managed to stay strong against both the 'Loonie' and the NOK today, having been impacted by an apparently conclusive International Monetary Fund (IMF) report that has blasted a 'Brexit' vote.

The Pound has jumped against almost all of its rivals of late, thanks to the Bank of England (BoE) not offering a particularly gloomy interest rate outlook today.

Rising Crude Oil Prices Positive for CAD, NOK Exchange Rates

Yesterday’s afternoon session saw a sharp improvement for global oil prices which triggered pronounced price action for several leading global currencies.

The price of a barrel of Brent Crude Oil had been steadily recovering from the multi-year low of $27 which it touched off during mid-January. The upward trend culminated in prices of close to the psychologically significant $50 threshold during the final days of last month, but the two weeks which have followed have brought renewed downside, with Bent Crude dropping back into the $43s during the first half of this week.

The easing of global oil prices in the short term has partly been driven by news in the past 48hrs that the giant state-owned Saudi oil production company Aramco will be increasing its output of ‘Black Gold’. The development comes as part of Saudi Arabia's Vision 2030 plan which includes proposals to sell shares in Aramco – higher levels of output - a move which will keep global oil prices lower for longer - are considered a key part of this fund raising exercise by Saudi officials.

US Oil Inventories sent Crude Prices Soaring

However, oil prices reversed this downtrend yesterday afternoon when the latest weekly US oil inventory figures pointed to a sharp and unexpected decline in the level of stocks of American crude. The latest Energy Information Administration (EIA) report revealed a decline of 3.4m barrels, sending the American stockpile down to 540m barrels.

The price of a barrel of Brent Crude jumped by over 3.0% in response to the figure and the US Dollar (currency : USD) lost ground as a consequence. Meanwhile, the Norwegian Krone (currency : NOK) and the Canadian Dollar (currency : CAD) reversed their early-session losses to reach intraday peaks against the Pound Sterling (currency : GBP). Analysts forecast that there could be further losses to come for the GBP NOK and GBP CAD exchange rates if oil continues to recover.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Canadian Dollar Forecasts Norwegian Krone Forecasts Pound Canadian D Forecasts