EUR/NOK potential for extra gains – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, expects the Norwegian Krone to keep pushing higher in the next months.

Key Quotes

“The NOK’s resilience to risk-off, a stronger USD and lower oil price this week continues”.

“While the global environment challenges the Norwegian currency, the coming week will bring a series of key releases: house prices (Monday), Regional Network Survey (Tuesday) and inflation (next Friday). In our view, the balance of risks for these releases are skewed to the upside, which could spark market speculation of an earlier Norges Bank rate hike already in September (vs. base case December)”.

“Hence, we still like to hold on to our long NOK positions in the likes of short EUR/NOK and long NOK/SEK”.