Archived IMT (2009.02.19)

NOK again proves its mettle, standing as the top performing currency amid G10 FX since Wed NY close and the beginning of the month. I reiterate my bearish stance in USDNOK (as seen in last week's Hot-Chart). The 7.20-6.63 consolidation is increasingly appearing as a bearish flag, with intermediate support levels at 6.73 and 6.60. Recall that Norwegian interest rates are at 2.50% and may bottom at a much higher level than those in US, EU, UK and JP. The bullish oil inventory data are also helping NOK via the $3.00 oil bounce.