EUR/NOK keeps the 9.25-9.40 range – Danske Bank
|Senior Analyst at Danske Bank Morten Helt expects the cross to remain within the current 9/25-9.40 range for the time being.
Key Quotes
“In the Scandies, EUR/NOK has respected the 9.25-9.40 range despite the disappointing inflation release out of Norway yesterday morning. In our view, it did not come as a big surprise that we did not see a larger spot reaction as (1) one factor could primarily explain the disappointing release (food prices) and (2) Norges Bank is unlikely to send any new signals at the 26 October meeting, leaving two additional inflation prints for it to react to at the key December meeting”.
“Meanwhile, the latest string of data out of Norway has clearly been on the disappointing side, which actually adds another argument for putting on a bullish EUR/NOK position as we approach year-end. Hence, our fundamental predisposition remains to enter a long EUR/NOK option trade on dips in the 9.25-9.40 range”.
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