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EUR/NOK plummets as Norway GDP surprises - UBS

FXStreet (Córdoba) - The UBS analyst team commented the EUR/NOK plummeted after a GDP positive surprise Thursday. They believe the Norges Bank is too dovish and will have to adjust over the medium term.

Key Quotes

“On Thursday, the publication of Q2 GDP growth showed that Norway has grown much stronger than the market and Norges Bank had expected. The Norwegian mainland economy grew by 1.2% in the second quarter, double what was expected in the market”.

“In response, EUR/NOK has dropped to 8.16 – exactly the level from which EUR/NOK skyrocketed in June, when Norges Bank released their very dovish growth outlook”.

“We continue to argue that Norges Bank is too dovish and will have to adjust over the medium term”.

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