November 02, 2023 07:42 GMT
Hold Firmer Following FOMC; Norges Bank Eyed
Scandis hold at firmer levels vs the EUR and USD in morning trade, following the dovish market reaction to the Fed last night.
- NOK-watchers will now turn to the Norges Bank decision at 0900GMT/1000CET, where rates are not expected to be changed. Focus will be on if the guidance for a December hike is softened or removed altogether. Our base case (see our preview here) is that the guidance will remain intact, particularly as we have only had one (albeit soft) CPI reading between the September meeting and today.
- Any softening in guidance may prompt a reversal NOK's current firmness.
- USDNOK and USDSEK currently sit 0.4-0.5% lower on the day, though moving average studies in both pairs remain in a bull-mode setup. EURNOK is 0.3% lower on the day, with 11.7770 the next support.