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Norwegian Krone Traded Stronger after the Inflation Report

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Nov. 11 2015, Published 11:40 a.m. ET

Norwegian krone traded on a higher note

The Norwegian krone was trading on a stronger note compared to the US dollar on November 10, 2015, due to higher inflation numbers for October. The Norwegian krone weakened following strong US employment data towards the end of last week. Before that, the commodity currency strengthened. The Norges Bank signaled towards keeping the interest rates constant at 0.75% through the end of the year even though household consumption remains sluggish and oil prices remain subdued.

The US dollar-Norwegian krone pair ended lower by 0.45% on November 10, 2015. Last month, the Norwegian krone appreciated after September’s inflation report. To learn more, read Norwegian Krone Extended Appreciation Trend Last Week.

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Consumer inflation is above the forecasts

In October, the consumer inflation in Norway rose by 2.5% on an annual basis amid expectations of 2.2% growth and last month’s 2.1% rise. On a monthly basis, consumer prices grew at a slower rate of 0.4% in October compared to 0.5% in September. However, the consumer prices were still above the forecasts of 0.2% growth. On a month-over-month basis, the core inflation rose by 0.2% in October. It was in line with the forecasts compared to 0.8% growth in September. On the other hand, producer prices fell by 9.4% in October after falling 10.1% in the previous month.

Impact on the market

Looking at the movement in the ETFs, the iShares MSCI Norway Capped ETF (ENOR) ended on a positive note on November 10, 2015. ENOR rose 0.34%. In contrast, the iShares MSCI Finland Capped ETF (EFNL) fell by 1.2%.

Among the Norwegian ADRs (American depositary receipts), petroleum company Statoil ASA (STO) fell 0.06% while fishery major Marine Harvest (MHG) rose by 0.77%. Finnish company Nokia Oyj (NOK) ended negatively. It fell by 2.8%.

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