Cats may have 9 lives, but soft-dollar Kermit is immortal.
Trade Update: Close Short GBP/NOK tactical trade recommendation for a potential loss
On June 27 we recommended going short GBP/NOK after the NOK weakened sharply following the Norges Bank meeting on June 20. At the time, even though Norges Bank showed some concern over the weaker pace of activity in Norway, we thought the weakening in the NOK was an overshoot. However, weaker-than-expected data out of Norway – especially the weak Q2 GDP reading earlier this week – have pushed the NOK weaker, while the recent run of better-than-expected UK data have also pushed the GBP stronger. This Wednesday (August 21) we went through our stop on this recommendation of 9.46 and close it for a potential loss of 3.4%.
The image is well-known by now.