Intraday Market Thoughts

Archived IMT (2010.05.05)

by Ashraf Laidi
May 5, 2010 17:40

USDNOK GRAVESTONE DOJI CHART & NORGES BANK DECISION: NORGES RAISED rates by 25-bps to 2.00% today in a decision that was not a surprise. While EURNOK is the more popular currency pair, especially now that Norwegian rates are a full percentage point higher than in the Eurozone, playing the USDNOK pair can be considered as a possible hedge against the escalating USD longs. Todays Norges rate hike briefly boosted NOK across the board before erasing all of its gains when US stocks opened sharply lower amid the escalating violence threatening the Greek Parliament and the ensuing plunge in oil prices below $79.00 per barrel. But as US stocks erased losses and oil regained $80.50, NOK was among the first currencies to rebound against USD. The gravestone doji shown in todays candle suggests a possible decline in the ensuing days, which could be a result of improved risk appetite stabilizing market appetite ahead (and after) ECB, UK elections and US non-farm payrolls.


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