EUR/NOK: Slightly weaker krone ahead – Nordea
|EUR/NOK now trades just below 10.00 and USD/NOK is at 8.60. Economists at Nordea believe both pairs have reached the bottom for now.
Reduction of stimulus from the Fed towards year-end will lead to a stronger USD and weaker NOK
“US Nonfarm Payrolls published on Friday is this week’s most important figure. A job report in the range of 250.000-500.000 new jobs is probably sufficient for the Fed to start tapering in November. A good job report will likely result in higher US rates and in turn a weaker stock market. This could lead to a stronger USD and a weaker NOK; the USD usually strengthens during risk-off while the NOK weakens.”
“From a technical perspective, the downside for EUR/NOK is very limited. EUR/NOK has traded only briefly below 10.00 this year with 9.90 as the lowest point this year. This should be a very firm line in the sand for the cross.”
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.