NOK remains vigilant on crude oil dynamics – Danske Bank

Crude oil dynamics stay a key driver for the Norwegian Krone for the time being, according to Chief Analyst at Danske Bank Pernille Henneberg.

Key Quotes

“The revised fiscal budget revealed a lower use of oil money which, all else being equal, translates to a lower need for Norges Bank buying NOK. The size of the adjustment is in the area of NOK35-40M/day; hence, in the big picture, it is no game changer”.

“In terms of price action, the higher oil price has aided oil-currencies including sending NOK higher in the latest sessions”.

“Also, commodity currencies are likely continue to trade in tandem and as a result, we still emphasise the importance of following global development for capturing NOK movements”.