Norway NOK Rate Decision December 16 2021

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    What does the data mean to the market?

    The Norges Bank decision on where to set the benchmark interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

    A higher than expected rate is positive/bullish for the NOK, while a lower than expected rate is negative/bearish.

    Historic deviations and their outcome

    June 18 2020 7th May 2020

    A further cut of 0.25% leaving interest rates at an unprecedented 0.00%

    https://calendarapi.galaxysoftwareinc.com/l/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jYWxlbmRhcjtuYmM9Tk87bm49SW50ZXJlc3QlMjBSYXRlJTIwRGVjaXNpb24

    Check out the price action here:

    https://calendarapi.galaxysoftwareinc.com/l/27848/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jaGFydDtpPTI3ODQ4O3Q9MjAyMC0wNi0xOCUyMDg6MDowMC4wO3M9RVVSTk9LO3I9UzE

    March 19 2020 20th March 2020

    A further emergency cut of 0.75% to the interest rate, Leaving interest rates at 0.25%

    https://calendarapi.galaxysoftwareinc.com/l/27738/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jaGFydDtpPTI3NzM4O3Q9MjAyMC0wMy0yMCUyMDA3OjMwOjAwLjA7cz1VU0ROT0s7cj1NMQ.

    Check out the price action here:

    https://calendarapi.galaxysoftwareinc.com/l/0/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jaGFydDtpPTA7dD0yMDIwLTAzLTE5JTIwOTowOjAwLjA7cz1VU0ROT0s7cj1TMQ

    March 19 2020 13th March 2020

    An emergency cut of 0.50% to the 1.5% interest rates due to the global pandemic unfolding and the expected significant expected impact on the economy, is the first cut to interest rates since 2016

    The world started to go into a meltdown as the realisation of a global pandemic started to unfold. There is no surprise the reaction to this was so poor, not even a blip on the charts.

    Due to the unprecedented times this first in a series of emergency cuts which doesn't create anything near the reaction we would likely see if a cut of this nature happened in normal times. A reminder of the impact Covid had in 2020 which I'm glad to say is now behind us and I'll be watching these announcements now and looking for a normal reaction to the data as it's released.

    https://calendarapi.galaxysoftwareinc.com/l/16296/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jaGFydDtpPTE2Mjk2O3Q9MjAyMC0wMy0xMyUyMDA3OjMwOjAwLjA7cz1VU0ROT0s7cj1NMQ..

    Check out the price action here:

    https://calendarapi.galaxysoftwareinc.com/l/0/aHR0cHM6Ly9jYWxlbmRhci5nYWxheHlzb2Z0d2FyZWluYy5jb20vIy9jaGFydDtpPTA7dD0yMDIwLTAzLTE5JTIwOTowOjAwLjA7cz1FVVJOT0s7cj1TMQ

    I will use forecasts of:

    Interest Rate Decision 0.50

    Today's trade plan

    Today it is forecast for a hike to the rate to 0.50% Most economists predict this therefore I will take a buy if they hike more to 0.75% or a sell if they don't hike and leave the rates at 0.25%

    This equates to a +/- 0.25% Deviation from the forecast of 0.50%

    Tradable pairs

    EURNOK

    USDNOK

    Hope this helps but please do your own analysis!!

    Good luck!!

    James Thatcher

    Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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