EUR/NOK Unstoppable

The chart to the right shows the last year of price action for the EUR/NOK. With oil prices tumbling and Norway being a key exporter of oil, the change shows through in the strength of the Norwegian Krone. Another primary concern is the central bank rate for Norway. Prices actually declined in the month of August meaning that the year-on-year inflation level fell from .6% to .4%, below the consensus of .6-.7%. With inflation being a key ingredient for rate hike reasoning, this news does not bode well for increasing rates.

EUR/NOK = 8.382 at time of post