17 Mar 2015
EUR/NOK hits highest level since January – TDS
FXStreet (Barcelona) - Jacqui Douglas, Senior Global Strategist at TD Securities, updates the performance of EUR/USD, GBP/USD and EUR/NOK, noting that expectations for a dovish Norges Bank has lead EUR/NOK to push higher.
Key Quotes
“Risk sentiment seems to be in a holding pattern, as markets begin to position for tomorrow’s FOMC decision. Most European equity markets are posting marginal losses, although we’ve seen crude oil prices push back toward yesterday’s lows.”
“The weakness in oil and the announcement of new Norwegian macroprudential measures have seen NOK selling off ahead of tomorrow’s Norges Bank decision, with EURNOK hitting its highest level since January as markets are now looking for a little more dovishness from the Norges Bank.”
“However, as we wrote yesterday, the fact that the hard data has generally held up better than expected means that the Norges Bank may pencil in less easing going forward than markets are looking for, so the potential for a hawkish outcome tomorrow makes the decision a difficult one to trade.”
“Looking at other markets, we’ve seen GBPUSD slide back below 1.48, but not on any particular news or developments, and it may just be a function of pre-election jitters ahead of tomorrow’s budget statement.”
“On the other hand, EURUSD is retesting yesterday’s highs above 1.06, and will probably have to wait until after tomorrow’s FOMC announcement before making any new lows again.”
Key Quotes
“Risk sentiment seems to be in a holding pattern, as markets begin to position for tomorrow’s FOMC decision. Most European equity markets are posting marginal losses, although we’ve seen crude oil prices push back toward yesterday’s lows.”
“The weakness in oil and the announcement of new Norwegian macroprudential measures have seen NOK selling off ahead of tomorrow’s Norges Bank decision, with EURNOK hitting its highest level since January as markets are now looking for a little more dovishness from the Norges Bank.”
“However, as we wrote yesterday, the fact that the hard data has generally held up better than expected means that the Norges Bank may pencil in less easing going forward than markets are looking for, so the potential for a hawkish outcome tomorrow makes the decision a difficult one to trade.”
“Looking at other markets, we’ve seen GBPUSD slide back below 1.48, but not on any particular news or developments, and it may just be a function of pre-election jitters ahead of tomorrow’s budget statement.”
“On the other hand, EURUSD is retesting yesterday’s highs above 1.06, and will probably have to wait until after tomorrow’s FOMC announcement before making any new lows again.”