EUR/NOK seen higher in the next months – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske bank, expects the Norwegian Krone to grind lower in the next months.

Key Quotes

“EUR/NOK has broken above 9.20, and we believe that heightened uncertainty, a lower oil price and year-end seasonality are likely to send EUR/NOK a little higher near term than previously projected (9.30-9.40 in 1-2M)”.

“For 2017, however, we do not see the story as much changed and we still expect the long-term fundamentally overvalued EUR/NOK (and USD/NOK) to move lower supported by real rate differentials normalising in the next 12M”.