Inflation Trigger for NOK?
The dollar looks set to end the week on a soft note, but G10 performance has not been uniform. The fact that NZD and JPY have done the best suggests that positioning adjustment, rather than fundamentals (currency risk betas) has been the key driver. Our FX Flow report indicates that NOK and SEK have the biggest structural short positions by a long shot. Today’s inflation figures for Norway might just be the catalyst the krone needs to lose the wooden spoon.
Read the full report: UBS