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NOK the Worst Performer in G10 For Second Session

NOK
  • NOK is sliding for a second session and again taking the place as worst performing currency in G10. Both USD/NOK and EUR/NOK are now through the psychological 10.00 handle and extending the recovery off the August lows to 6.1% and 4.7% respectively.
  • Today marks the beginning of the Norges Bank's sized-up FX buying programme, with the bank upping their daily NOK sales to NOK 3.5bln from NOK 1.5bln across August to meet the needs of the sovereign wealth fund.
  • Key levels to watch include the 100-dma in EURNOK at 10.0707 and 10.1442 in USDNOK, the 76.4% retracement of the July - August downleg.
  • Norwegian Manufacturing PMI crosses at 0900BST and governor Wolden Bache speaks at a Swedbank seminar at 1200BST. Longer-term focus is on August's CPI release on Sept 9th and the Norges Bank decision on Sep 22nd.

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