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Short GBP/NOK Closed With A Profit‏

ByDanske Markets
Published 01/16/2013, 06:46 AM
Updated 05/14/2017, 06:45 AM

We have decided to close our short GBP/NOK recommendation. We close the trade at 8.9620 (initiated at 9.0400), with a 1.0% profit including a carry gain of 0.13%.

We still like the trade from a fundamental view but think that better entry levels can be found later. We see a risk the market will push the NOK weaker given the latest Norges Bank comments. Yesterday, Norges Bank warned that rates would be affected if the current level of the NOK is sustained.

We do not believe Norges Bank is ready to cut rates in a surprise move like March last year. However, given the comments, the market might say that the NOK, at least short-term, has lost a bit of its shine. From a technical point of view, we also consider GBP oversold.

This is the second FX Top Trade that we have closed. Our average profit so far is 1.9% with a 90% hit ratio.
We would strongly consider reopening the trade if we see a move above 9.03 in GBP/NOK. As stated above, we still like the trade from a fundamental point of view.
FX Top Trades 2013 – overview
To Read the Entire Report Please Click on the pdf File Below.

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