Playlist: NOR25.I

Show less
Hardy: As the Fed meets this week, what to expect in FX
John J Hardy
15 June 2015 at 7:01 GMT
Taper talk: How FOMC will affect Norwegian Krone
Lea Jakobiak
18 September 2013 at 11:47 GMT
Video / 18 September 2013 at 11:47 GMT

Taper talk: How FOMC will affect Norwegian Krone

Lea Jakobiak

A day after the Federal Reserve meets in the US, we’ll hear from its Norwegian equivalent, Norges Bank. It will discuss whether to keep interest rates on hold, but considering the country’s core inflation has jumped to 2.5%, Saxo Bank’s John Hardy thinks the central bank “must respond in some way”. 

He says that hawkish expectations could strengthen the krone, especially against the euro, and also warns that the Norwegian currency is not immune from the FOMC outcome.

If the Fed surprises on the hawkish side, he believes there is room for upside in dollar versus the krone, in the short term. USDNOK is at a key support area of 5.90 at the moment, and he says its next move "seems to be large either way".

At its latest policy meeting in June, Norges Bank kept rates at 1.5% but suggested lower rates might be ahead.

Data out in August showed Norway's economy grew 0.2 percent in the second quarter.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail