Euro to Norwegian Krone (EUR/NOK) Exchange Rate Softens as ‘Grexit’ concerns increase
The Euro weakened against the majority of its most traded peers on Friday, as economists remain concerned that Greece will go bankrupt at the end of this month. Athens has just five days to revise its economic reform plans to a standard that the wider Eurozone will consider acceptable before the next round in much needed bailout funds will be issued.
The Eurogroup is due to convene on April 24 to decide whether the funds will be released. With time running out economists are starting to raise their bets that Greece could be forced to leave the currency bloc.
Whilst not likely to prove a disaster to the Eurozone, a Greek exit would damage the regions prestige and will likely increase anti-EU sentiment across the continent. For Greece however, such an event could prove disastrous.
The Euro to Norwegian Krone (EUR/NOK) Exchange Rate Touched a Session Low of 8.6229
The Norwegian Krone was able to make gains against the Euro as domestic data came in positively.
According to the Oslo based Statistics Norway, manufacturing output in the Scandinavian nation dropped by 0.5% from December 2014 to February 2015 compared to the previous three-month period.
Industrial production however increased strongly on both a monthly and annual basis. Month-by-month, production rose by 2.6%, a strong reversal from the -3.0% figure recorded in the preceding month and was better than economist forecast for a dip of -0.5%. On an annual basis, production rose by 1.9%.
Also supporting the Norwegian currency was the release of Consumer Price inflation (CPI) data. The CPI index rose by 0.3% on a month on month basis and improved to 2% on an annual basis. A rise in the sale of clothing and footwear was the main cause of the rise.
The Euro to Danish Krone (DKK) Exchange Rate Slipped to a Session Low of 7.4701
The Euro also weakened against the Danish Krone after data showed that inflation improved in Denmark.
According to Statistics Denmark, consumer prices in the nation increased for a second consecutive month in March. On a year-on-year basis inflation rose by 0.6% and on a monthly basis consumer prices increased by 0.5%.
Food and drink prices increased by 1.3% on an annual basis in March and the cost of clothing rose by 0.7%.
A separate report also showed that Danish industrial production increased by 0.8% in February, a rise from the previous figure of -1.9%.