NOK poised for further upside – Danske Bank

Jens Pedersen, Senior Analyst at Danske Bank, believes there is further room for extra gains in the Norwegian Krone.

Key Quotes

“NOK suffered in late Friday trading on the back of risk (incl. oil) selling off after the US nonfarm release”.

“We had been arguing that the balance of risk last week was for a NOK correction given the external environment. While EUR/NOK broke through the 100D moving average that we referred to, we still think any NOK setbacks marks a buying opportunity from a strategic basis”.

“This week’s data calendar is heavy in Norway: house prices (today), inflation and Q4 GDP. Overall, we see upside risk to these releases relative to consensus. If one believes global risk appetite settles, then long NOK this week also seems like a reasonable tactical trade”.