NOK: Sentiment & housing concerns offsetting oil prices

NOK has been under a heavy selling pressure following the disappointing breakdown of Q3 GDP and the global theme of fragile housing markets gaining tractions (with NOK being one of the “focus” currencies), points out the research team at ING.

Key Quotes

“The sentiment will remain the main driver of NOK this week.”

“On a relative basis, we see less downside to NOK vs SEK during the remainder of the year as the 14th December’s Norges Bank meeting is likely to deliver an upward revision to the current interest rate forecast due to the mix of NOK weakness and higher oil price. Data-wise, the Norway September Unemployment rate (Wed) should have a limited impact on NOK.”