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

Senior Analyst at Danske Bank Kristoffer Lomholt reiterated the positive outlook on the Norwegian Krone in the near term.

Key Quotes

“In terms of the NOK, Thursday’s Riksbank decision paradoxically made it more attractive to sell EUR/NOK in the top of the 9.47-9.75 range as a dovish Ingves sparked renewed speculative long interests in NOK/SEK”.

“Meanwhile, Friday’s NAV labour market report out of Norway added to a list of arguments why we think a short EUR/NOK position only should be a more tactical near-term bet on the cross moving slightly lower in the coming sessions”.

“Indeed, in the current global environment we are not convinced that we are in for the next strong move lower in EUR/NOK in the coming months. We forecast the cross at 9.60 in 1M”.