NOK stays vigilant on Norges Bank – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, expects the Norges Bank to stay on the sidelines at today’s meeting, with minimum impact on the Krone.

Key Quotes

“The weekly flow data from Norges Bank revealed that foreign banks last week continued to net -sell NOK. This flow likely reflects dividend payments to foreign investors and general long covering”.

“Our overall impression is that investor money, key for NOK short-term, remains side-lined and that last week’s flow does not reflect bearish NOK builds at this stage”.

“Today’s Norges Bank meeting will likely not have a significant market impact. Overall, we maintain a cautious tactical stance despite our strategic constructive view on the NOK”.