NOK under pressure on oil sell off – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj assessed the prospects for the Norwegian Krone in light of the crude oil collapse.

Key Quotes

“In Norway, the oil price collapse is putting pressure on the NOK. Indeed, it is remarkable that EUR/NOK topside has held for now with disappointing inflation/mainland GDP (even if both were down to temporary factors) and a USD5/bbl collapse in oil”.

“If we do not see a stabilisation in oil prices soon though, we are likely to see the cross break higher. We recommend utilising drops in NOK this side of New Year to add exposure from a 2019 perspective”.