Free Trial

Norges Bank catch markets off-guard, eyeing...>

FOREX
FOREX: Norges Bank catch markets off-guard, eyeing gradual normalization
- Despite all analysts eyeing an unchanged rate path projection at today's rate
decision, the Norges Bank caught markets offside by projecting a slow and
gradual normalization of rates as soon as 2023 - far sooner than expected. As a
result, EUR/NOK slipped to new weekly lows, with NOK the best performing
currency in G10 so far today. SNB decision came and went with little
consequence, with the Bank keeping policy on hold, while reaffirming their
commitment to the EUR/CHF in unlimited quantities.
- Equities are mixed, with no clear direction across continental markets or US
futures, although this does mark a decent pick up from the overnight Asia-Pac
lows. GBP is the weakest so far Thursday ahead of the BoE decision, although the
Wednesday GBP/USD remain in tact for now.
- The BoE rate decision takes focus going forward, with the Bank expected to up
the total size of their QE program by a further GBP100bln. US weekly jobless
claims are the data highlight. Speeches are also scheduled from a variety of
Fed, ECB, BoE and BoC members.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.