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NOK, SEK: FX liquidity conditions ahead of the US vote deteriorate – ING

Elsewhere in Europe, EUR/NOK tested the 12.0 near-term target, which likely mirrors some deterioration in FX liquidity conditions ahead of the US vote, ING’s FX analyst Francesco Pesole notes.

Krone’s weakness to keep Norges Bank hawkish

“The krone’s weakness will likely keep Norges Bank a hawkish outlier this week, with markets pricing in no risk of a cut at the Thursday meeting.”

“Another development in the Nordics is the Riksbank meeting (also on Thursday). We expect a 50bp in line with consensus and market pricing, and see only a severe post-US election SEK selloff potentially tilting the balance to 25bp.”

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