Over the past month the Scandinavian crowns, NOK and SEK, are down by around 3.5% vs the USD, whilst up around 0.7% vs the EUR. Near-term against the EUR we see scope for some further, albeit limited, gains in both NOK and SEK, mainly a reflection of the probability of a dovish ECB later in the week. In Norway Norges Bank on Tuesday also announced that for the first time ever it will in October sell foreign exchange equivalent to NOK 250 million per day in connection with the transfers to the Government Pension Fund Global (GPFG). While this has been well flagged by Norges Bank it does represent a sharp change from previous years, when FX purchases averaged NOK300-400mn/month (2001-2013).
Read the full report: FX Daily