EUR/NOK poised to resume the downside – Danske Bank

Senior Economist at Danske Bank Vladimir Miklashevsky noted the Norwegian Krone is expected to gather traction in the next months.

Key Quotes

“With the outlook of another strong Regional Network Survey in Norway today, the scene for both a Norges Bank rate hike and a higher rate path at next week’s monetary policy meeting seems set”.

“In our view, the upcoming hike marks an important trigger for the next move lower in EUR/NOK as the fundamental case is now supported by NOK headwinds becoming tailwinds shortly. We therefore recommend selling the EUR/NOK spot outright”.