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Faves the Norwegian krone (NOK)

One of my faves the past three years has been the Norwegian krone (NOK)… You know, every time I say the word "Norwegian" I begin to sing… I once had a girl, or should I say, she once had me… She showed me her room, isn't it good, Norwegian wood.

Anyway… Norway printed a stronger than expected GDP report for the third quarter yesterday, and should keep the oven warm for another central bank (Norges Bank) rate hike, which should push the krone even higher versus the dollar. Norway's GDP grew at 1.9% in the third quarter, when it was expected to grow just 1%! So… The spotlight is back on the krone, and well it should be!

I don't know if you know this, I know I explained this once or twice before, but Norway's pension is fully paid for every citizen! That's unbelievable! But true! And they have also secured more! WOW! Add that to a trade surplus… Rising interest rates… Economic growth… And petrol production… And you should have a strong currency!

Six rate hikes this year by the Norges Bank, have failed to dampen growth, and with oil prices going to $100, more rate hikes will be needed to fight inflation!


http://www.dailyreckoning.com/Writers/Butler/Articles/112107.html


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