NOK seen higher, buy dips in EUR/NOK – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, assessed the recent Norges Bank meeting while keeping the positive outlook on the Krone.

Key Quotes

“Yesterday’s Norges Bank meeting provided the hawkish surprise we had argued as a reason for staying long NOK going into the meeting”.

“Meanwhile, EUR/NOK is now approaching levels where we would contemplate taking profit on our short position. This is not least because the domestic data calendar now becomes rather thin in the weeks to come, leaving the cross vulnerable to profit taking at a time when the global economic surprise index is set to move lower”.

“For now, our eyes are on the set of support levels around the mid-to-low 9.40s. If we take profit, it should be seen as a tactical consideration, as our fundamental predisposition would remain to rebuy NOK on dips”.