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NOK Supported By Firm Brent Prices

SCANDIS

The firmer oil price backdrop (Brent futures just below $90/bbl, close to 12% above the late August lows) continues to shield NOK from the fading risk sentiment evident in European equity markets, while SEK fails to benefit, and is among the poorest performing currencies Wednesday.

  • NOKSEK is suitably firmer (+0.25%) and trades within range of first resistance at 1.0388 (Sep 1 high), clearance above which opens the 1.0400 handle (Aug 11 and 14 high) and bull trigger of 1.0497 further out.
  • Inflation metrics will be the focus near-term: August CPI releases are due Monday for Norway and Thursday for Sweden, providing the last look at inflation ahead of a busy Scandi session on Sep21, at which both the Riksbank and Norges Bank hold their rate decisions within 30 minutes of each other.
  • Worth recalling the usual Wednesday release for DoE crude oil inventories is pushed back by one day this week due to Monday's Labor Day market holiday.

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