NOK/SEK -2.2% to 0.9992, having fallen 5.8% so far this year.
* Norway’s krone is worst-performing major currency in 2014, having dropped more than 20% versus USD
* USD/NOK +1.5% today to 7.5989, reached 7.6091, strongest level since 2003
* NOTE: Sweden Readies Arsenal of Measures to End Deflation
As a major energy exporter Norway has not been immune from the effects of the falling price of oil. However considering the fact that it has one of the world’s largest sovereign wealth funds and standards of governance on par with anywhere in the world, one might conclude that the indiscriminate selling of commodity currencies has fallen disproportionately on the Nordic nation.
The Krone dropped to a new 10-year low yesterday and extended the decline today before rebounding impressively. With such a wide overextension relative to the trend mean, there is ample room for steadying. Upside follow through tomorrow, and finding support above today’s low on the next pullback will be needed to confirm more than temporary support. Some steadying in the oil price would also represent a bullish catalyst.
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