EUR/NOK to return towards 11.90 if Norges Bank’s statement sounds more cautious – Commerzbank

FXStreet Insights Team FXStreet

Economists at Commerzbank analyze how the Norges Bank Interest Rate Decision could impact the Krone (NOK).

NOK to benefit if Norges Bank maintains its restrictive wording

If Norges Bank maintains its restrictive wording today this is likely to fuel rate hike expectations for December a little again, thus supporting Krone. It will also matter though what the inflation data for October and November looks like (published on 10th November and 11th December).

If today’s statement sounds more cautious as far as December is concerned, contrary to expectations, that is likely to act like a punch in the face for NOK and might cause EUR/NOK to return towards 11.90 again.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.