Norway: NOK very undervalued by now – Nordea
The pressure on the NOK abated during this week. Norges Bank announced a number of measures to calm the markets and the USD swap lines have clearly helped, economists at Nordea apprise.
“If equity bears return with a vengeance, so will the weakening pressure in Scandi FX.”
“NOK will remain vulnerable until the price-race to the bottom is behind in oil markets.”
“We remain skeptical on Scandi FX until summer, but consider in particular NOK very undervalued by now, which is why long-term strategies should bet on a stronger NOK.”