Important fundamentals for the NOK.

The Norwegian Central Bank today announced it will sell its foreign currency reserves to a daily amount of 700 countless NOK throughout the month of April. This is done to keep the prescribed amount of cash transfered to the Govermental Retirement Fund (International), shortnamed SPU. As a result of lowered income from the oil-industry, the central bank will use its mandate to sell some of its overseas currency reservers, to have the ability to move the pre-determined amount of money into the SPU.

This will to a certain degree strenghten the NOK temporarily in the brief term.

Also the results of the negotiation in Lausanne involving Iran and its counterparts regarding the Iranian nuclear program, ardently could affect the oil-price and therefore that the NOK.

Nevertheless, it's the Norwegian Central Banks next interest rate decision, due to be released on the 7th May, that's the real market.

When they didn`t cut the rates in the last rate decision in March, it shocked the market and the NOK strenghtened. As the market had priced in this rate decrease.

The consensus is they'll cut the rates by 0.25 percent in May. The market will price this in and the NOK will reach the same price levels as it had prior to the last rate decision.

You will find great opportunities to go short on the NOK in various crosses.