EUR/NOK expected to grind lower – Danske Bank

Arne Rasmussen, Chief Analyst at Danske Bank, expect the Norwegian Krone to gather further traction in the next months.

Key Quotes

“On EUR/NOK, we argue that the balance of risk favours staying short as a break of 9.40 would open up for a test of the low 9.20s”.

“This said, if the 9.40 support level is not broken in coming weeks, we would contemplate taking profit on our short trading recommendation on the balance of risk for year-end seasonality, a high bar for a Norges Bank December hike and technicals”.

“We stay short for now on the fundamental attractiveness and our expectation that risk sentiment will stabilise”.