By Greg Holden – Norway’s central bank decided to leave interest rates unchanged last week, a decision which was broadly anticipated. Comments from Norges Bank Governor Svein Gjedrem seem to suggest that Norway’s economic growth and inflationary figures are on track with what they expected.
Since this key decision was made last week, the Norwegian krone (NOK) has steadily gained ground against its European and American rivals, the EUR and USD, respectively. Against the euro, the krone peaked just above 8.0000 before regaining its composure and climbing back to currently trade near 7.9060, almost a thousand pips higher since last week.
The USD/NOK tells a slightly different story. Following the bank’s decision to hold rates, the krone in fact experienced initial difficulty to gain strength against a broadly ascending US dollar. However, now that momentum has shifted somewhat, we see the NOK paring losses against the greenback. The pair climbed as high as 6.2286 last Wednesday before stabilizing. As of this morning, the USD/NOK has begun a steady decline and currently trades at 6.0815.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
