We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/z7ogzy00dy
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
Norwegian Krone Sinks After Norges Bank Meeting

Norwegian Krone Sinks After Norges Bank Meeting

2017-03-16 11:59:00
Oliver Morrison, Analyst
Share:

Talking Points:

- Norwegian Krone drops as central bank keeps rates on hold.

- Norges Bank adds it expects rates to remain low for several years ahead.

- Krone sinks against Euro and Dollar – weaker oil prices will compound the weakening currency.

See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The Norwegian Krone has weakened versus the Euro and Dollar after Norges Bank, the country’s central bank, once again kept interest rates on hold at 0.5% at its March meeting Thursday.

The decision had been widely anticipated. However, the bank now says it expects rates to remain low for several years ahead, despite the fact that “persistently low interest rates may lead to financial system vulnerabilities”.

“Monetary policy remains expansive and supports restructuring of the Norwegian economy,” said Norges Bank Governor Oystein Olsen when releasing the bank’s interest rate decision. “The executive board’s current assessment of the outlook suggests that the key policy rate will remain at today’s level in the period ahead.”

He added that economic forecasts imply a “slightly higher probability of a decrease” in interest rates than an increase. The central bank also significantly downgraded its CPI forecasts from 2.4% to 1.7% this year, and from 1.8% to 1.5% in 2018.

The move hit the Krone, which has weakened already in recent weeks after the plunge in oil prices. EURNOK has gained 0.0416 in Thursday trading to reach 9.1615. The Euro is, however, gaining strength on the back of the Dutch election result, which was a slap in the face for the prospects of a lurch in support for Brexit/Trump style populist nationalism in continental Europe.

More tellingly for the Krone sell-off is the reaction versus the Dollar, which is itself weakening after the Fed’s ‘dovish rate rise’ yesterday. USDNOK is up 0.0431, a gain of over half a per cent on the day, to trade at 8.5416. What’s more, with oil prices in a lower range, expect the Krone’s woes to continue.

USDNOK 15-Minute Intraday (March 16, 2017)

Norwegian Krone Sinks After Norges Bank Meeting

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.