Outlook on NOK remains positive – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj keeps the constructive view on the Norwegian Krone in the next months.

Key Quotes

“Clients continue to see EUR/NOK moving lower in the second quarter, albeit at a much slower pace than in Q1. Consensus looks for a 1.1% drop down to 9.45 in 3M, after the 3% drop YTD”.

“The positive view on the NOK goes hand in hand with expectations that Norges Bank will hike later this year, but the predicted slowdown in the NOK rally may suggest that the hike is to some extent discounted already. Danske Bank sees EUR/NOK at 9.40 in 3M and is thus marginally more bullish on the NOK”.