Norges Bank could hike next year – Danske Bank
The Norwegian central bank – the Norges Bank – could hike rates as soon as next year, noted Chief Analyst at Danske Bank Allan von Mehren.
“While we emphasize the vulnerability of the NOK in the month to come (seasonality), we underline that the case for a 2018 Norges Bank hike – unlike the Riksbank case – has actually improved in recent weeks amid better data (across the board, incl. housing) and a much weaker currency (3.7% weaker than Norges Bank forecast)”.
“Our fundamental predisposition therefore remains to sell EUR/NOK via options, but admittedly technicals and foreign investor focus on the Swedish housing market makes the timing tricky. Key resistance levels are 9.8004 (last week’s high), 9.8906 (Dec 14 high) and 10.00 (figure). Key support levels are 9.70 (figure) 9.6435 (16 Nov low)”.