Brief description: GBP/NOK is considered a cross rate and shows how many pounds you should transfer for 1 NOK. This is one of the mobile pairs in the money market. It is believed that the pound against the Norwegian krone can express uncontrolled price movements, and sometimes shows a measured trend. This pair is almost not analyzed using technical indicators, including a certain amount, which is dangerous for the investor, including having significant potential for trading at the current moment.
The currency of England is the British pound. The British found many pseudonyms for their funds, in quantities: sterling, wong, quid, etc.
In general, the name of the currency comes from the Old English version of the starry sky, which during this period was called "steorra," and "ling" is a diminutive suffix. "Sterling" or "star" is a medium-sized coin or a silver penny. When the Normans conquered Britain in 1066, the country established a new payment calculation: the silver pound, which was divided into 240 pence. From there, the name went - "pounds."
The British pound can be called the oldest monetary unit currently in use. According to our information, the most famous exchange rate is pounds sterling in euros. The pound is considered 4 of the traded monetary units and 3 of the largest foreign exchange reserves in the world. The Bank of Great Britain is regarded as the currency equivalent of the US Federal Reserve.
The first unit of the Norwegian currency is a cent, which is estimated at 1000. For a long time coin minting was monopolized, and when a shortage arose, foreign currency units were imported.
The first series of banknotes was spotted in 1965. When sovereign Christian V granted Bergen Jorgen Tor Molen the right to issue and pay bills, which were to become legal tender in the plain of An Sira (Flekkefjord) and the coastal zone in the north. Banknotes were supposed to be kept by the transition period, but Molen was unable to meet demand and went bankrupt.
The first issuing bank in Denmark-Norway was Assignations-, Vexel-of Laanebanken, also known as Courantbanken. It was a personal bank, but it was subjected to tsarist regulation. In addition to issuing banknotes, he also borrowed funds from the government. However, there were practically no restrictions on the number of notes issued, and there were a lot of them in circulation. In 1745, the bank had the opportunity to refuse to pay in silver, and the price of banknotes collapsed. In an attempt to clean up the monetary system in 1791, a new issuing bank, Den Danske Norske Speciebank, was introduced with premature rules and three subsidiaries in Norway.
In the law on the money of April 17, 1875, it was decided that the crown will become the monetary unit of the state and will be divided into one hundred thousand. For example, it was decided that Norway was ready to join the mint of the Scandinavian Union on October 16 of the same year. This Union was concluded between Denmark and Sweden in 1873 on the recommendation of a General Commission (in which Norway participated) to establish joint Scandinavian currency units based on gold. The Union operated until 1914 when it had no practical value. However, only in 1972, he was officially postponed.
In December 1992, the Central Bank of Norway lowered its fixed exchange rate against the floating exchange rate due to fierce speculation with the Norwegian currency in the early 1990s. This led to the fact that the Central Bank fell even further in a short period - 2 billion to protect the Norwegian krone with the introduction of foreign exchange reserves.
The direction of the exchange of the pound sterling and the Norwegian krone (GBP/NOK), like the rest of the currency pairs, can decrease or take off. First of all, it is essential for investors when the lack of trade balance in the eurozone increases, and investor confidence in the European currency unit is undermined. As a result, the euro/dollar pair is likely to fall by several points, forming a downward trend in average opportunity.
The Norwegian pound and the krona often show the opposite trend of trading against the US dollar, and the pronounced economic climate in Europe and Asia allows the GBP/NOK pair to trade, unlike any other couple. In addition to spreading stable trends in base pairs, there is another possibility of short-term modeling of lateral movement. Already in the middle of the European session, trading shows the lateral movement of the GBP/NOK pair, and some statistics for the UK included in this session.
The British pound immediately responds to this data, and we become witnesses of sharp, targeted movements that become duplicated by the GBP/NOK pair, depending on the momentum of the USD/NOK pair.
From time to time, this opportunity to be relevant: the British pound falls steadily, the Norwegian krone remains flat, and the USD/NOK pair is still trading with a slight decrease. The observed bias prepares the trader for the probability of predicting the upcoming movement following this pair. This is because the excellent value, in the given case of the pound, made a specific move, did not have the slightest effect on the pair, or the pair's valuation did not in any way affect.
However, taking into account current commodity trends, historically news of the US economy, a decrease or increase in the GBP/USD pair leads to a corresponding reduction in value or a rise in the USD/NOK we are analyzing. For this reason, it is essential to adapt to changes, because traders are faced with the task of analyzing currency units in a cross rate, as well as the movement of currencies, which is drawn up by the US dollar.