EURNOK should ease towards 10 again over the coming weeks – Commerzbank
|October inflation data is due in Norway. Norges Bank remains credible, cautious and flexible. Therefore, economists at Commerzbank expect EURNOK to ease towards 10 again.
New information for Norges Bank
“It seems that inflation is likely to have risen again. In all probability, Norges Bank will have to adjust its inflation projections to the upside again. On the other hand, Norges Bank pointed out last week that electricity and gas prices have fallen recently, which means that the rates for November and December might already be falling, thus confirming the smaller rate step in November. If prices were not falling, Norges Bank is likely to step up the speed of its measures again in December.”
“25 bps more or less are not the decisive factor, what matters is the fact that the central bank continues to take decisive action against the price risks even though it is keeping an eye on the economy – the second part of its mandate.”
“I stick to my view that the krone is actually trading too cheaply and that EURNOK should ease towards 10 again over the coming weeks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.