The NOK could be headed for further losses after the 25bp rate cut to 1.0% yesterday and the dovish central bank statement which did not rule out another rate cut by autumn.Norges Bank governor Olsen is scheduled to speak today.A quiet day for data today will be animated by Greece headlines after the failed Euro group discussions yesterday (emergency summit on Monday).Technical & Option hedging Perspectives:Long real body engulfing bull candles have occurred on both USD/NOK & EUR/NOK charts.But volumes substantiated the bull momentum on USD/NOK but not EUR/NOK.RSI (14) evidences bullish price convergence on USDNOK whereas it began diverging on EUR/NOK.We recommend shorting 7D Theta At-The-Money EUR/NOK calls or long 7D ATM EUR/NOK Puts while adding simultaneously longs on same 15D (0.5%) Out- Of -The-Money USD/NOK call.
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