EUR/NOK stays sidelined so far – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, noted the Norwegian Krone is expected to navigate within the familiar range for the time being.

Key Quotes

“The NOK ended last week of on a strong note in a move driven by the SEK revival and somewhat higher oil prices. This leaves the question of whether this is the time to position for the next NOK leg higher”.

“In our view the answer to that question is no as we identify a range of serious headwinds in the likes of positioning, Nibor fixings, the balance of risk related to markets’ Norges Bank pricing, global growth momentum, China weighing on commodity FX and finally the potential for more USD strength. Hence we still think EUR/NOK near-term should be played tactically within the 9.47.9.75 range”.