News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
USD/JPY
Bullish
More View more
Real Time News
  • Read an article from Reuters about banks sharing deposit information on clients to evaluate extending credit to those with no credit score. With so much liquidity we keep pushing lending down the credit scale. I'm sure someone is already working out an APR with Bill Hwang
  • USDCAD: Since the BoC’s hawkish taper, CAD strength has been dominant with USD/CAD dropping over 4.8% and hitting a six year low. Get your $USDCAD market update from @JMcQueenFX here:https://t.co/aEc5McOPFS https://t.co/FGO4EuxJR5
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.36% 🇨🇭CHF: 0.32% 🇯🇵JPY: 0.12% 🇪🇺EUR: 0.08% 🇬🇧GBP: -0.02% 🇨🇦CAD: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1mjDURi237
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.40% US 500: 1.29% Germany 30: 0.27% France 40: 0.19% FTSE 100: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/dmtXTwOHYk
  • Heads Up:🇨🇦 BoC Gov Macklem Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-13
  • Cryptocurrency market a sea of red. Ethereum/Bitcoin spread keeps positive sentiment. Get your market update from @nickcawley1 here:https://t.co/JQrMw98w3V https://t.co/vWwSNBi91L
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.34% Silver: -0.07% Oil - US Crude: -2.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5xqZi7nDzM
  • Seems we have found the BTD mentality. 15-minute chart of the $SPX. Biggest opening hour rally thus far since March 9th https://t.co/bnzEVDGQTs
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.78%, while traders in GBP/JPY are at opposite extremes with 69.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/nWhPrkgMS5
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 0.18% Silver: -0.49% Oil - US Crude: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NPv5vwHjXT
US Dollar May Rise vs NOK if Norges Bank Trims Hawkish Outlook

US Dollar May Rise vs NOK if Norges Bank Trims Hawkish Outlook

Dimitri Zabelin, Analyst

US DOLLAR, NORWEGIAN KRONE, NORGES BANK – TALKING POINTS

  • Norges Bank rate decision, commentary may sink Norwegian Krone
  • Monetary authorities may pivot away from previous hawkish stance
  • US Dollar may extend gains vs Krone if Nordic markets get spooked

See our free guide to learn how to use economic news in your trading strategy!

The Norwegian Krone may be in for a painful session ahead if the Norges Bank cools rate hike expectations for the rest of the year. Up until recently, it was one of the most hawkish central banks in the developed world. However, slower global growth and weakening demand out of Europe may be eroding confidence that the Norwegian economy can withstand an environment of tightened credit conditions.

Specter of Slowing Growth is Haunting Europe

Chart Showing Eurozone Manufacturing PMI

As Norway’s largest trading partner – and destination for over eighty percent of the country’s exports – European demand is critical to the wealth of the Norwegian economy. Policymakers in Oslo are growing hot under the collar as a German ZEW survey data reached alarming-low levels and preliminary reports showed Europe’s largest economy likely contracted in the second quarter.

Norway’s petroleum-based economy is inherently at the mercy of changes in global sentiment due to its strong link to crude oil prices that are fickle by nature. The Norwegian Krone and benchmark OBX equity index frequently move in tandem with Brent, which might explain why the central bank is reconsidering its tightening cycle. Weaker crude oil prices are a downside risk for inflation and may warrant a change in policy.

ICE Brent Crude Oil, Norway OBX Benchmark Equity Index

Chart Showing crude oil prices, OBX

OBX chart created using TradingView

Looking at market implied policy rates on August 14 versus the historical reading in July shows a downward shift across all the various tenors. This suggests investors are anticipating significant trouble ahead to such a degree that it will warrant a reversal of the Norges Bank’s tightening cycle. It appears that the central bank is now finally succumbing to the pressure of its peers, and NOK will likely suffer as a result.

Gloomy Premonitions Ahead

Chart Showing Norges Bank Implied Policy Rates

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES