EUR/NOK still poised for further upside – Danske Bank
Jens Pedersen, Senior Analyst at Danske Bank, sees further downside pressure around the Norwegian Krone in the next weeks.
“The NOK remains highly vulnerable as illustrated by yesterday’s price action where very little flow post the disappointing retail sales figures had a large spot impact”.
“EUR/NOK stabilised on the back of Norges Bank’s announcement of a higher NOK purchase in December but post the OPEC decision the cross broke above the December 2014 high as oil prices dropped below the USD64/bbl mark”.
“We have for some time been wanting to sell EUR/NOK from a 2018 strategic perspective but decided to wait given the vulnerability of the NOK leg at this stage”.
“The following sessions could well be decisive for whether we will see a further break higher in EUR/NOK as the data calendar brings important releases”.