Rallying natural gas prices keep NOK bid – Danske Bank

Yesterday’s inflation print out of Norway surprised slightly to the topside which alongside the rally in natural gas prices has kept NOK bid in the early parts of this week, Danske Bank’s FX analysts report. 

Monday’s inflation print doesn’t seem to be a game changer

“While the natural gas price situation bears monitoring – a development we do not find one-sided positive for NOK – we emphasize that the inflation details revealed that it was imported inflation created the topside surprise while domestic inflation actually moved lower.” 

“With the latter being the clearly more important driver of Norges Bank’s medium term inflation view we do not see yesterday’s inflation print as any game changer for our call of 4 Norwegian rate cuts this year stating in March.”