As expected, the Norges Bank delivered its first rate hike on Thursday, bringing its benchmark policy rate to 0.25%. It is the first developed market central bank to raise rates in the post-COVID-19 crisis period. The central…
Highlights The US Climate Prediction Center gives ~ 70% odds another La Niña will form in the August – October interval and will continue through winter 2021-22. This will be a second-year La Niña if it forms, and…
Over the past three months, the Norwegian krone has been the worst performing G10 currency. However, a buying opportunity is opening up for this cyclical currency versus both the USD and EUR. First, our Foreign Exchange…
Highlights The dollar is fighting a tug of war between two diverging forces: an economic slowdown around the world but plunging real interest rates in the US. The litmus test for determining which force will gain the upper hand is if…
BCA Research’s Foreign Exchange Strategy and European Investment Strategy services conclude that the global environment and Norway’s continued economic strength will create potent tailwind for the Norwegian krone over…
Highlights The Norwegian economy will continue to grow above trend for the next two years or so. Norwegian inflation will firm up. Among Advanced Economies, the Norges Bank will lead the way in terms of policy tightening; however,…
Dear Client, Dhaval Joshi has started publishing the new BCA Research Counterpoint product, in which he will continue to apply his unique process to dig up original investment opportunities around the globe. I trust many of you will…
Highlights For the month of February, our trading model recommends shorting the US dollar versus the euro and Swiss franc. While we agree a barbell strategy makes sense, we would rather hold the yen and the Scandinavian currencies.…