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NOK, CHF Markets More Active as Pricing Leans Hawkishly

FOREX
  • FX volumes data shows NOK, CHF and SEK markets have been most active today relative to recent averages, with the higher-than-expected Norwegian inflation release prompting EUR/NOK to show below the 50-dma for the first time this year. Spillover NOK/SEK buying has pressed the cross above 1.00 for the first time since early April.
  • CHF has been buoyed by the hawkish turnout from SNB's Jordan yesterday, who upgraded his inflation language to: "inflation is more persistent than we initially thought." from "inflation is higher than we like it to be" previously.
  • SARON futures have remained under pressure and are lower again today, with Sep-23 futures touching 97.99 at the NY crossover - the lowest level since early May.

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