Archive for the ‘NOK’ Category

Comments from Norway’s central bank, Norges Bank, made gains for the Krone against Euro. “Key interest rates should be increased to a “more normal level”, according to Norges Bank.

Analysts expects gains in Norwegian interest rates

However, currency analysts expect Norway to increase interest rates earlier than previously (more…)

Norges Bank decided today to keep the key interest rate unchanged at 2 %, as expected by Bloomberg forecasts.

Governor Svein Gjedrem explain why:
“Recent developments in the Norwegian economy have been broadly in line with expectations. Activity is rising moderately. Inflation has slowed and is now below 2 per cent”.

Better global growth

Norges Bank find the global economic growth to be slightly stronger than expected. The outlook for Europe is now a bit better, while the growth of the US economy is more uncertain.

OnlineForex.net find it likely that Norway keep main interest rates unchanged at 2 % for another few months.

After reaching 6 month high last week, pound sterling is now falling to it’s lowest lever in more than a week. Reason: Data signals Britain is not recovering as quick as expected.

Housing market slows down

The first decline in property prices appeared in July, showing a slower sales growth then previous months. Sterling fell to $1.5740 in London afternoon trading hours.

Analysts such as John Hydeskov, Danske Bank, believe Sterling is overbought and should have a correction. He suggest buying Norwegian krone instead..

Norges Bank made an official statement regarding fx purchases in July. They promised to not purchase any foreign currency in the current month.

They are otherwise one of the usual suspect for large transactions in foreign currency, especially when considerable amounts of petroleum are sold from Norway. The monthly allocations are determined by The Ministry of Finance every month.

The Norwegian Krone has strengthen from 9.15 to 8 for one Euro the latest year. Many currency analysts expect the NOK to rise even further.

Norges bank left the interest rates on hold at 1,75 % – just as expected. Their outlook for Norways economy was more negative then earlier expressed. As a result, the norwegian krona have declined against the major trading partners and currencies.

Why did Norway keep interest rates at 1.75 %

One of the main reasons for keeping the rate at current levels was scaled back inflation expectations, while a slower recovery in Europe was another. Recent Norwegian growth and unemployment rates have also been slightly lower then expected.

Forecast for Norwegian krona?

The krona (more…)