Free Trial

EUR/NOK Spikes as I-44 Bumped to New Series High

NOK
  • Selling pressure on oil-tied FX persists, culminating in a sharp, short-lived spike in EUR/NOK to 12.1064.
  • Worth noting this price action comes ahead of tomorrow's Daily FX Purchases release for June - after the May figure disappointed markets by confirming NOK 1.4bln in daily purchases over the course of the month - this ran counter to expectations NOK selling could shift to NOK buying in the coming months.
  • SEB expect the Norges Bank to keep pace at NOK 1.4bln next month - providing little relief for the currency. They write that the revised budget leaves an implication that there will still be a need to convert NOK -> FX this year.
  • Today's price action will result in renewed pressure on the I-44 NOK rate - hitting a new series high of 124.80 in today's update. This tilts the Q2 I-44 FX rate average to 122.10, 2.2% above the 119.50 assumption at the March MPR. These projections will be updated at the Jun22 rate decision.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.