1 Jul 2013
Flash: Time to buy the NOK - HSBC
FXstreet.com (Barcelona) - The HSBC FX Team believes the NOK will strengthen from its current level.
According to the HSBC FX Team, "The currency has already adjusted to the greater likelihood of an interest rate cut by the Norges Bank, echoing some softer than expected signals on activity." Furthermore, the Team adds that "It has also paid the price for its association with the strangely resilient EUR, the belated adjustment to USD ascendancy adding to the NOK’s woes."
While NOK vulnerability may come from "a fresh undifferentiated scramble out of less liquid currencies, this does not feel like a re-run of 2008" HSBC notes. The bank thinks that "The market is coping with a transition to normalised monetary conditions, not the potentially cataclysmic events of the unravelling global financial crisis in 2008." In short, HSBC suggests it is time to buy the NOK.
According to the HSBC FX Team, "The currency has already adjusted to the greater likelihood of an interest rate cut by the Norges Bank, echoing some softer than expected signals on activity." Furthermore, the Team adds that "It has also paid the price for its association with the strangely resilient EUR, the belated adjustment to USD ascendancy adding to the NOK’s woes."
While NOK vulnerability may come from "a fresh undifferentiated scramble out of less liquid currencies, this does not feel like a re-run of 2008" HSBC notes. The bank thinks that "The market is coping with a transition to normalised monetary conditions, not the potentially cataclysmic events of the unravelling global financial crisis in 2008." In short, HSBC suggests it is time to buy the NOK.