Everbank’s Chuck Butler highlights the reasons he foresees a possible rally in the Norwegian Krone on the horizon in today’s Daily Pfennig:
I had a great lunch yesterday with the Big Boss, Frank Trotter, and we were discussing what we would talk about next week at the Orlando Money Show. I told Frank that I really believe in the prospects of a nice big rally in Norwegian krone… Let me tell you why… First and foremost, it remains a Surplus country… A positive balance of payments… And that surplus has allowed Norway to weather the storm that’s hit just about every other country in the world… See, why I believe the Surplus countries should always be considered when buying currencies? Anyway… The main reason it lost ground from last July’s levels is the drop in Oil prices… They like the other types of Commodity driven currencies like Aussie, Canada, Brazil, New Zealand, South Africa, just got hammered due to the selling in Commodities… But… You know my outlook for the inflation in this country, and that will be driving Commodity prices higher by year-end… But the leader in the forefront of all this move will, in my opinion, be Oil prices… And IF Oil prices rebound like I suspect they will, that will be a very nice underpin for Norwegian krone…
Chuck’s currency insights are often quite prescient, and he doesn’t always come out flatly and say what he likes to rally soon in the Pfennig, so this is worth noting.
If you’re looking for a place to make this trade – your not alone – my futures broker doesn’t offer this contract either. One good option to consider is a foreign currency account with Everbank.