EUR/NOK seen at 8.90 in 3-month – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek suggested the cross could grind lower towards the 8.90 area in a 3-month’s view.

Key Quotes

“OPEC said yesterday that it remains cautiously optimistic that oil stocks will decline following its recent output cuts, despite the opposite development seen this year, and it needs to wait to decide on a deal extension”.

“The oil price appears to have stabilised and that should give room for a move lower in EUR/NOK near term, although there is not much on the calendar in terms of Norwegian data releases or Norges Bank monetary policy decisions to drive the market”.

“We forecast EUR/NOK to drop to 9.00 in 1M and 8.90 in 3M”.