NOK flows: NOK marginally firmer after Norges Bank decision
NOK edges higher after Norges Bank leaves rates unchanged
EUR/NOK is slightly softer after the Norges Bank decision to leave rate unchanged, which was entirely expected. They also didn’t change the outlook for policy, noting that “the policy rate forecast presented in September was consistent with one rate cut per year in the coming three years. The Committee's assessment is that no new information has come in that indicates a material change to the outlook for the Norwegian economy”. So there isn’t much reason for any impact on the currency, with all this in line with consensus. But the NOK still offers and attractive yield compared to the EUR and SEK, and has substantially underperformed in the last year or two, particularly against the SEK. The 12 level in EUR/NOK looks like an effective top, and if so there is very limited NOK downside from here. While the NOK does tend to suffer in risk negative periods, longer term players should see the NOK as attractive.
