- Ahead of tomorrow's Norwegian CPI release (Exp. 6.1% from 6.5%), Goldman Sachs write that a perfect storm exists for NOK, writing that NOK weakness has been overdue because of USD/NOK's inverse correlation with equity prices as well as the dovish December Norges Bank decision.
- They see NOK under pressure going forward market prices a higher, longer Fed cycle, leaving smaller G10 CBs struggling to keep up due to higher rate sensitivity.
- GS slightly revise their EURNOK forecast higher, seeing 10.80, 10.90 and 11.00 across their 3, 6 and 12 month forecasts.
NORWAY: Goldman Sachs Notch EUR/NOK Forecasts Higher
Last updated at:Jan-09 09:08By: Edward Hardy
markets-real-time+ 2
- Ahead of tomorrow's Norwegian CPI release (Exp. 6.1% from 6.5%), Goldman Sachs write that a perfect storm exists for NOK, writing that NOK weakness has been overdue because of USD/NOK's inverse correlation with equity prices as well as the dovish December Norges Bank decision.
- They see NOK under pressure going forward market prices a higher, longer Fed cycle, leaving smaller G10 CBs struggling to keep up due to higher rate sensitivity.
- GS slightly revise their EURNOK forecast higher, seeing 10.80, 10.90 and 11.00 across their 3, 6 and 12 month forecasts.
