EUR/NOK expected to resume the downside – Danske Bank

Chief Analyst at Danske Bank Pernille Henneberg sees the Norwegian Krone gathering traction in the next months.

Key Quotes

“The Swedish inflation uptick adds some upward pressure on NOK rates even if the substantial cooling of the housing market in Norway and below target inflation are important differences facing Norges Bank compared with the Riksbank”.

“But yesterday the effect of higher Norwegian rates on the NOK was broadly countered by NOK/SEK selling following the release as well as heavy trading in oil”.

“For now, we stick to our view that EUR/NOK is a range play in the weeks to come but the probability of a move lower has risen following Swedish CPI”.