The Norwegian krone’s correlation to the Brent oil price
«When the oil price tanks eyes turns to the NOKie». We often see the Brent oil price as a factor for explanation of the moves in the Norwegian krone (NOK) versus other currencies, but how does it really work over time? We have been looking closer to this relationship and have some interesting findings. These findings can be split in three levels:
What impacts the Norwegian krone price to the euro and why is the Norwegian krone so weak? These are frequent questions since some time and it is easy to understand why investors ask these questions. The Norwegian economy is going to once again be the outliar with a likely much stronger GDP growth in 2019 compared to the rest of Europe. Norwegian interest rates are positive, yes you read right, and the central bank recently hiked interest rates and upped their interest rate path.
The Nordic capital market was early on putting sustainability and ethical investing high on the agenda. Especially large institutional Swedish investors have been driving the demand and other investors have followed. It is maybe not that surprising that the Nordic region played an important role in introducing green bonds in the global capital market.
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