Bank of France: Pound Sterling is far above the long-term average against the Norwegian Krone.

The strategist of Societe Generale in France stated in a report that the British Pound against the Norwegian Krone exchange rate appears to be in jeopardy because the exchange rate is 15% higher than its long-term average level, despite the prospects for monetary policy indicating that the exchange rate should be at a lower level. Data from the London Stock Exchange Group shows that after Norwegian inflation data was higher than expected in January, the market expects that there is little possibility of the Norwegian central bank cutting interest rates this year. In contrast, the market expects the Bank of England to cut interest rates twice before the end of the year. These strategists suggest that although the Norwegian Krone is suppressed due to the policy of converting Krone into foreign currency assets, the relative monetary policies and growth prospects of the UK and Norway mean that there are sufficient reasons to sell the British Pound against the Norwegian Krone. The British Pound rose by 0.5% to 12.9615 Norwegian Krone.