[ad_1]
Bad news from various sectors causes the krona exchange rate to weaken noticeably.
The krone exchange rate has the weakest day in many months on Monday, experiencing a real shock on the first day of the Christmas week.
One euro is now worth 10.73, the lowest value since the beginning of the month. As recently as Friday the crown was lonely stronger in three months.
Read more here: The crown up: now an expert comes with a new prediction
Rare
Strategist Ole Haakon Eek-Nilsen at Nordea Markets confirms that we see an unusually sharp drop in one day.
– The weakening of the crown is on par with what happened in October and September, but then the weakening occurred over a longer period. Now the same decline occurs over the course of a day, he tells Nettavisen.
Against the dollar, the krona weakened nearly 2.3 percent on Monday afternoon to 8.78 (see chart below).
POWERFUL CROWN SLOT: The krone has weakened by more than 2 percent (upward curve) against the dollar on Monday.
In front
There is a long list of miserable news that makes the impact.
This is due to a sharp weakening in the price of oil, which has fallen by five percent, at the same time that the Oslo Stock Exchange fell by three percent. Other exchanges are also down dramatically, which is negative for the crown. The sharp drop comes after Friday was marked by records in the financial market, where, among other things, the Oslo Stock Exchange reached its highest level in history.
Also read: New record on the Oslo Stock Exchange – ended at 950.50 points
Mutation
However, there is another bad news that is behind all the other falls.
Also read: People flee London – now they are arrested: – Christmas has been canceled
– Both the stock market and oil prices are driven by the prospect of further virus lockdown, especially in the UK. We have also had a good mood and a lot of optimism for a long time, so it is not surprising that there is a correction after a period of good humor since October, Eek-Nielsen tells Nettavisen.
In the UK, Christmas has been “canceled” after a major outbreak of a mutated and much more contagious version of the coronavirus. As a result, most countries have closed flights from the UK.
No good mix
– That you shut down the entire country is unusual and raises concerns about things like the food supply. You don’t like financial markets, especially when Brexit is at the top. It’s not a good combination, says Eek-Nielsen.
The online newspaper recently wrote that the krone rose directly after new interest rate signals from Norges Bank. Handelsbanken Capital Markets, however, believed in a persistently weak crown.
In October, Handelsbanken predicted that in the first quarter we would have to pay 11 crowns for 1 euro and 9.40 crowns for 1 dollar.
Also read: The British government fears the food shortage after the refusal of entry
Advertising
Super offer: now you can get free electricity until the end of February
