Norway is one of the richest countries in the world. It has a population of 5 million people, a GDP of almost $400 billion, and a GDP per capita of more than $75,000. This makes it the sixth wealthiest country in the world after Qatar, Luxemburg, Singapore, Brunei, and Ireland. It also has the biggest sovereign wealth fund with assets of more than $1 trillion.
This year, the Norwegian Krone has lost about 1 per cent of its value against the USD. This has happened mostly because of the strength of the USD. The country has also seen its growth rate improve from 0.1% in the first quarter to the current 0.4%. This growth has been lower than that of the United States, which rose by 4.2% in the second quarter. The unemployment rate is currently at 4.0%, which is slightly higher than the year’s low of 3.8% while the inflation rate remains at 3.4%. This is higher than where it started the year at 2.4%.
The Norwegian central bank, also known as the Norges bank will release its interest rates decision on Thursday. Traders expect that the bank will leave rates unchanged as it has done in the previous meetings. The chart below shows that the bank plans to start hiking in December this year.
The USD/NOK pair reached 8.2840, which is slightly lower than the important resistance level of 8.3000. Still, this is lower than the 8.5000 that the pair reached in August of this year. Ahead of the Norges bank statement, the pair will potentially continue moving lower as the USD strengthens. This is because traders may also be paying close attention to the 3Q GDP numbers from the United States.