Turkish Lira: CBRT Eschews Rate Cut

The Norwegian Krone lifted from two week lows against the Dollar and Pound on Thursday after the Norges Bank reiterated its intention to begin lifting interest rates later this year, although it continued to make that commitment contingent upon “clear signs that economic conditions are normalising.”

The Euro-to-Dollar exchange rate entered the new week appealing for dip buyers to salvage its earlier recovery after a U.S. Dollar power surge asked fresh questions of the short-term outlook for the single currency.

The Norwegian Krone was again an underperformer among major currencies ahead of Thursday’s monetary policy decision from the Norges Bank, which could be more of an upside risk to the oil-linked currency than is commonly appreciated.

The Euro has advanced against a broadly weaker U.S Dollar over the course of the past 24 hours, with analysts saying the door is ajar to a fresh test of the 2021 high.

The Dollar remains well supported in the wake of comments overnight from a senior U.S. official that warned of the need for higher interest rates in the U.S. to prevent the economy from overheating.

Foreign exchange strategists at investment bank Nomura are forecasting a rally higher in the Euro against the Dollar driven by positive portfolio flows over coming weeks and months.