Gold Surges Past $4400 on Crude Oil Rally; Bullish Trend Dominates 
Who should own the knowledge that underpins AI technology? 
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally 
Big AI wants to slow down AI research. Is it a safety pause or a strategic retreat? 
Bank of England Sees Surge in Higher-Risk Collateral 
China’s robots can run faster than Usain Bolt – now they are being prepared for war 
JPMorgan Sees ECB Raising Rates to 2.75% in December 
ECB Rate Hike in Focus as Oil Tops $100 
Physicists zoom into the birth of cosmic rainstorms with new CERN study 
Fed Chair Warsh Faces Key Jackson Hole Test 
Jefferies Names 6 Top India Stock Picks Across Key Sectors 
Europe can’t achieve space sovereignty alone. Here’s why 
Add as a preferred source on Google
Norway's Norges Bank is scheduled to hold its rate-setting meeting and publish its new monetary policy report on Thursday. At its previous meeting in September, the central bank indicated a roughly 40 percent chance of a further rate cut by June next year. However, subsequent communication by the board was much clearer which suggested the central bank had hit bottom with rates. The message was again repeated at the central bank's October policy meeting.
"Our analysis indicates, on balance, that we are looking at a 10-15bp downward revision of the interest rate path for next year. In isolation, this would mean the new path showing an almost 100% chance of a further rate cut." said Danske Bank in a report.
That said, Norway's housing market seems to have been even stronger than expected, supported by low interest rates. Data released last week showed Norwegian home prices rose 0.8 percent from October to November (seasonally adjusted). The annual growth rate fell marginally, but that was caused by an unusually strong growth in November last year.
There is less need for a cut now as growth is picking up and interest rates seem to have bottomed elsewhere in the world. Meanwhile, the Norges Bank does not want to fire up the housing market further with a rate cut now, although the central bank has previously stressed that other authorities must be the first line of defense to ensure financial stability.
“We do not expect NB to cut further and we think that a dovish rate path along with the usual worsening of the liquidity situation going into end year could lead to some temporary upside support in EUR/NOK – especially after the past couple of days’ decline on the back of the OPEC deal”, said Danske Bank in a report.
EUR/NOK was trading at 4.9490 at around 1200 GMT. Technical studies are bearish. The pair is extending downside as rising oil prices on the back of the OPEC deal support NOK. Next major supports for the pair lie at 8.922 (Oct 19,20 lows) and then 8.90 (Oct 4 low).
FxWirePro's Hourly Currency Strength Index at 1200 GMT showed EUR strength was at -96.4879 (Slightly bullish). For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
