EUR/NOK seen climbing to 9.60 in the near term – Danske Bank
|Kristoffer Lomholt, Senior Analyst at Danske Bank, expects the Norwegian Krone to drop towards the 9.60 area within a month’s view.
Key Quotes
“Over the past month we have seen some of the NOK weakness that we have been calling for materialise. Recently the move has been amplified by risk-off and concerns about the Swedish housing market spreading to the NOK. In the near term, we expect the NOK to track risk sentiment which leaves the currency vulnerable to the weak side at a time of the year where liquidity tends to worsen”.
“Meanwhile, for 2018 we still pencil in a moderately stronger NOK, not least on the back of a further reduction in spare capacity in the Norwegian economy and a currency supported inflationary outlook allowing for the first Norges Bank hike in Q4 2018. Also valuation forces will remain a drag on the cross over the next year”.
“We raise and roll our forecasts profile to 9.60 in 1M (from 9.40), 9.40 in 3M (9.50), 9.20 in 6M (unchanged) and 9.10 in 12M (unchanged).”
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.