February 21, 2024 09:15 GMT
NOK Worst G10 Performer As Oil Ticks Lower
FOREX
The combination of the downtick in oil futures and European equities has weighed on the NOK, leaving it at the foot of the G10 FX performance table.
- Our commodities team points to the higher USD and uncertainty over OPEC+ production plans/global demand growth as drivers for the oil move.
- EUR/NOK sits 0.1-0.2% higher on the day, with the 20-day EMA (11.3620) providing initial resistance. We are still some way off last Tuesday's high of 11.4462 though, with market-moving domestic news flow light since then.
- Tomorrow's Norges Bank survey will provide insight on wage growth expectations, a key input for the Bank re: determining how long to hold policy rates at current levels.
- The oil-sensitive CAD also struggles, extending yesterday's moves which came in the wake of the soft local CPI print.
- Elsewhere, we have flagged that the strength in Chinese equities facilitated a bid for the Antipodeans in Asia hours, although both AUDUSD and NZDUSD have partially pared overnight gains on the broader risk/oil moves.
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