EUR/NOK expected to trade within 9.47-9.75 range – Danske Bank
|Arne Rasmussen, Chief Analyst at Danske Bank, assessed the prospects for the Norwegian Krone in the next weeks.
Key Quotes
“For the NOK, we are now approaching the start of the Norwegian dividend season, which means a period of net NOK selling. In isolation, that supports the idea of a NOK vulnerable to near term profit taking from accounts that have been net long the Norwegian currency. Indeed, we have seen foreign accounts sell the NOK recently”.
“However, we do not want to overdo the impact of the dividend season as (1) Norwegian ownership is high, (2) payout amounts are relatively small, (3) some dividends actually imply NOK buying and finally (4) amounts can easily have been hedged at other times than on the ex or pay-out date”.
“We still see EUR/NOK as a near-term 9.47-9.75 range play”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.