NOK: Struggling to find friends - ING

According to analysts at ING, NOK still struggles to find support even though it has: i) energy, ii) a hawkish Norges Bank and iii) SEK weakness in its favour.

Key Quotes

“It’s not clear what’s driving this weakness, but perhaps similar to Russia, its programme of FX buying for a fiscal rule may be pressuring the NOK in thin summer markets.”

“In Norway this week, we’ll see Consumer Confidence on Tuesday and the unemployment rate on Thursday. Both of these should reflect an economy growing with enough momentum that should allow Norges Bank to hike rates in September.”