NOK looks to Norges Bank for direction today – Danske Bank
Senior Analyst at Danske Bank Jens Pedersen noted the Norwegian Krone should stay in the limelight ahead of today’s releases.
“In the Scandies, yesterday proved a very calm session. Meanwhile, that will change today as we get the two most important data releases out of Norway within little more than an hour. First, we get the Regional Network Survey which is likely to indicate above-trend growth close to Norges Bank’s (NB) forecast. Meanwhile, details on capacity utilisation could well suggest that NB currently underestimates the output gap, which would be one of several factors arguing for a higher rate path at the meeting on 14 December”.
“Second, house prices due out are likely to confirm that the house price decline has more to go but also that the majority of the house price decline is behind us. Details will be scrutinised for the timing of a potential turnaround. In terms of our overall NOK view, we think a fundamental case for a strategic long NOK position is building and we emphasise that there are important differences between Norway and Sweden”.