The Norwegian krone had a very profitable week, as rising oil prices helped support the Scandinavian currency against its main currency rivals. Continued rumors of a Norwegian interest rate hike also helped support the currency. Against the US dollar, the krone has gone up well over 800 pips in the last week. Currently the USD/NOK is trading at 5.4550. The NOK faired even better against the euro, gaining close to 900 pips in the same amount of time. The EUR/NOK currently stands at 7.7815.
The Swedish krona saw more mixed results over the past seven days. A strong US jobs report last week helped boost the USD/SEK close to 700 pips before the pair staged a reversal yesterday and dropped to its current level of 6.3090. Meanwhile, an anticipated euro-zone interest rate hike has helped the euro gain close to 700 pips against the krona since last week.
Turning to the week ahead, the ongoing conflict in Libya is likely to keep the price of oil high, which could help the NOK. The SEK is likely to face a tougher time, as the anticipated hike in euro-zone interest rates is likely to send the krona plummeting against the euro. Traders will want to also pay attention to the main US economic indicators. Any positive American news will likely help the dollar against the Scandinavian currencies.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
