Despite a very firm message from Norges Bank last week, with a rate path indicating 100% probability of a September hike and as much as 50% probability of a following hike in December, the NOK hasn’t really rallied, notes the research team at Nordea Markets. Key Quotes “EUR/NOK traded briefly below 9.40 in the aftermath of the message, but the move has faded slightly since.” “The NOK would likely have rallied much more, if this hiking message from Norge’s Bank had coincided with a period of risk on in markets. Since February EUR/NOK (and also partly EUR/SEK) has traded very closely connected to periods of risk on and risk off, as indicated by the high correlation with S&P 500.” “A cease-fire between Trump and Xi is likely needed to pave the way for lower EUR/NOK and EUR/SEK. If the global environment allows it, recent signals from Norges Bank and the Riksbank indicate that both central banks will “tolerate” stronger currencies.” “Norges Bank could accept EUR/NOK in 9.20 in Q4 without any bearing on monetary policy, that is, an unchanged NOK from here is hence an upside risk for this week’s rate path. The Riksbank KIX forecast implies that EUR/SEK could trade in the range 10.10-10.15 in Q2 and around 9.90 in Q3 without a negative impact on monetary policy.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY consolidation theme stays unchanged – UOB FX Street 5 years Despite a very firm message from Norges Bank last week, with a rate path indicating 100% probability of a September hike and as much as 50% probability of a following hike in December, the NOK hasn't really rallied, notes the research team at Nordea Markets. Key Quotes "EUR/NOK traded briefly below 9.40 in the aftermath of the message, but the move has faded slightly since." "The NOK would likely have rallied much more, if this hiking message from Norge's Bank had coincided with a period of risk on in markets. Since February EUR/NOK (and also partly EUR/SEK) has traded very… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.