The Norwegian crown is having a good rebound today, says Chris Turner, FX analyst ING.
The Norwegian crown wins as inflation persists
“It had been hit hard by the history of global trade/low oil/bad liquidity. In addition, this morning we have seen another persistent underlying inflation report for March, where underlying inflation is maintained at 3.4% year -on -year. This can continue to delay the next cut of rates of Norges Bank.”
“At the high point of the dislocation of yesterday’s market, we also saw the EUR/CHF quoting below 0.93 again. One of the many possible perspectives here is that the hands of the Swiss National Bank can be tied in regards to its traditional currency purchase operations. “
“The sustained purchase of currencies by the SNB could see Switzerland formally named currency manipulative and receive an increase at its initial reciprocal rate of 31% of the US. This could only encourage investors to buy CHF in risk aversion episodes, thinking that the SNB offer in EUR/CHF will not be as solid as it was before.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
