Norwegian Krone on a roll

Author: Giles Coghlan | Category: News

Norwegian krone on the move via Bloomberg

Norges Bank

One you may have missed. The Norwegian krone is doing very well this month and is experiencing a double whammy of support. The Norges bank has a hawkish outlook at the moment that is supported by both inflation levels and oil prices.

With OPEC's cuts being adhered to by its members, Iran and Venezuela impacting oil supply and cuts set to continue at the June meeting for OPEC oil has been steadily bid in recent days. One third of Norway's exports come from oil, so a boost there impacts the whole economy. 
The Norges bank is expected to raise interest rates to 1% from 0.75% on Thursday as inflation came in at 2.6% in February, beating estimates and the banks own economists.  

So, buying NOK into the rate announcement and taking the spike might be in order for Thursday. On the daily chart of the USD/NOK, price is rejecting the daily pivot point. remember that the FOMC meeting tonight provides near term risk.

Norwegian krone on the move via Bloomberg

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