Tag Archives: NOK
FX Daily
Key news – Japanese Q1 GDP beat expectations. – Positive risk sentiment continued yesterday but Asian session has been mixed.
Norway: Rebound in mainland growth
– Mainland GDP will probably rebound in Q1 – in line with Norges Bank’s view – Norges Bank would have to change its view significantly in case of another weak figure
Central banks in focus – speculative flows driving markets
– Risk appetite has surged after the latest (positive) NFP number and USD has strengthened on the contrary to its more common negative correlation with risk appetite.
FX G10/EM Morning Trader Views
EUR – Frustration again yesterday for eur bears with a retest below 1.2950 met with corp and longer term demand.
Core inflation higher than expected, weakens the case for an interest rate cut from Norges Bank
– Core inflation at 1.5% and headline CPI at 1.9% in April – Inflation higher than expected maindly due to rise in food prices
EURNOK and NOKSEK after Norges Bank
A big day for EURNOK and NOKSEK as Norges Bank leans against the idea that it will ease again. NOK could rally further on the back of today’s developments.
Norges Bank keeps key policy rate unchanged
– Key policy rate unchanged at 1.5% – Norges Bank waits for more data, sum-up so far on the weak side
FX Daily Strategist: Europe
German data the next hurdle for the EUR Our economists and market consensus are looking for a small contraction in German March industrial production after February’s 0.5% expansion.
Norges Bank on hold until June
We expect Norges Bank to cut the interest rate in June given the low inflation momentum. This month, we expect it to keep the policy rate unchanged at 1.5% and
G10 FX financial scorecard
– This week the scorecard recommends buying JPY, GBP, USD and selling AUD, SEK, NZD.
Foreign Exchange Outlook
The USD has entered a period of retracement, weakening against most currencies in April (except the JPY),
Norges Bank highly likely to cut rates May 8
Lower policy rates from the ECB are likely to make an impact on Norges Bank’s rate decision at its policy meeting next Wednesday.