Tag Archives: NOK
US Morning Update
Major Overnight Headlines • Euro Area October PMIs generally weaker than in September, halt move to 1.3850 in EUR/USD for now
Norway viewpoint: No rate change, probably no change in view
Norges Bank kept its key rates unchanged at 1.50% as expected. There was no new interest rate forecast this time. Norges Bank said it had not considered other alternatives.
FX Daily Strategist: Europe
Constructive on Carry and Commodity Currencies The initial reaction to the rise in China’s money market rates has translated into lower US Treasury yields and weaker equity markets,
Scandi central banks in focus this week
With the US government open for business once again, financial markets will receive crucial US data this week starting with non-farm payrolls later today.
Norges Bank: Lower inflation against weaker NOK
• Norges Bank will not change rates • NOK has weakened significantly, but on the other hand inflation and some other domestic figures have been on the weak side
FX Market Drivers: Eventful week ahead. We recommend short-term BUY of NOK and SEK. Place a sell order for EURUSD
Review Today and tomorrow will see a lot of economic indicators from the US.
The Global Macro Pulse
Overnight Price Action Equities have rallied in Asia even as rates markets have drifted and the USD has risen slightly.
EUR/USD volatility at 6 years low
Three months implied volatility in EUR/USD currently trades at 6 years low just above 7%,which means implied volatilities in the FX market have not been this low since October 2007.
Lack of demand for and safety in the NOK-haven
What just hit the fan? EURNOK traded around 7.40 these days last year. Those were also the days when the consensus call for EURNOK 4q 2013 was 7.18.
Norway: Much lower inflation
• Sharp drop in inflation • We do not believe in a hike next year any more Core inflation (CPI-ATE) came out at 1.7% y/y in September compared to 2.5% last month. Nordea and Norges Bank was 2.2% while consensus was 2.3%.
FX Daily Strategist: Europe
USD on a stronger footing, but market anxiety likely to build as we head into next week The USD is trading on a stronger footing following the release of the minutes to the September FOMC meeting and onexpectations of negotiations starting to get under way in Washington.