EUR/NOK downside appears limited – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, sees further losses in the cross to be somewhat limited.

Key Quotes

“In the Scandies, EUR/NOK fell towards the 8.80 level yesterday on a sharp move higher in oil prices”.

“Importantly, EUR/NOK broke below the important technical level of 8.83-8.84 from the beginning of February, which may have opened up for further downside”.

“While valuation still supports a lower EUR/NOK in our view, we see limited further downside from the current level in the short term and forecast the pair at 8.80 in 3M”.