Glass is edging towards half full for Norges, but nothing more
The krone’s robust performance on Thursday suggests the market believe Norges’ narrative is starting to change on the margins. In their statement for March, the central bank stated unequivocally that the three biggest risk factors – housing, household debt and CPI – all showed constructive evolution. Despite ‘approximately’ unchanged rate guidance, downside pressures have eased. The case for NOK is strengthening, but guarded optimism can only take you far and longs should stick to relative value trades.
Read the full report: UBS