After the Australian dollar, the Norwegian crown has been the G10 currency with the worst performance in the last week, says the FX analyst of ING, Chris Turner.
Nok/JPy could break towards the 12.00 area
“He has received a great blow both for the fall in oil prices (an OPEC+ supply increase was a great shock) and for the fact that Norwegian interest rates have one of the most pronounced falls given the previous hard line approach to Norges Bank. What could also impact the Nok is the decrease in liquidity.”
“This general increase in volatility, which increases the metric value at risk of investors and forces the disappointment, will impact the liquidity of currencies. The Nok traditionally has a very poor performance in non -liquid environments, which could be the story of this week.”
“Investors (those with the ability to establish new positions) are expected to look at a pair like Nok/JPy. If things would be really ugly this week in financial markets, Nok/JPy could break towards the 12.00 area.”
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.
