After huge volatility this year, mostly on the back of sharp movement in the oil price, USD/NOK is currently trading close to where it started the year while the krone it is around 6% lower vs. the euro compared with the beginning of January. Norges Bank is likely to retain a cautious tone at this week’s policy meeting, but it may be prepared to wind in its dovish policy guidance next month if the better economic conditions are sustained through the next set of data releases, per Rabobank.
“The result of a Reuters survey published this morning suggests that there is no expectation for a policy move from the Norges Bank at the August 20 meeting. That said, speculation has appeared that stronger than expected inflation data and house price inflation in Norway could result in the central bank sending less dovish policy signals in September.”
“Assuming that oil prices remain supported around current levels, the risk that the Norges Bank may be one of the first G10 central banks to step away from its ultra-accommodative signalling should lend the NOK some support.”
“The June low in the EUR/NOK 10.43 area is likely to offer some support ahead of 10.40.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.