EUR/NOK still a ‘sell on rallies’ – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj still recommends fading any upticks in EUR/NOK backed on prospects of further appreciation for the Norwegian Krone.

Key Quotes

“In terms of the Scandies, both EUR/SEK and EUR/NO K remain bid as souring risk appetite and much focus on deteriorating Swedish fundamentals have sent EUR/SEK into technically unchartered territory”.

“Fundamentally, we still want to emphasise the big differences between

Norway and Sweden. As such, we think any spikes in EUR/NOK, on externals in the likes of yesterday’s oil price drop, creates selling opportunities on a strategic basis”.

“We remain long NOK/SEK and short EUR/NOK”.