EUR/NOK will test the 10.00 level – Nordea
|The EUR/NOK pair is set to test the 10.00 level but a further strengthening of the NOK will require a lift in oil prices in the opinion of economists at Nordea. EUR/NOK is trading at 10.026 right now.
Key quotes
“NOK is benefitting from lower Covid-19 infection rates through a returning demand for risky assets. A test of the 10.00-level in EUR/NOK looks likely within the coming week. However, significant strengthening of NOK beyond the 9.90-9.95-level will probably require a more fundamental lift in oil prices, which so far remains to be seen despite better mood in equities.”
“Norges Bank has no tradition of rocking the boat due to short-term volatility in markets. However, the virus reaction in financial markets would still affect Norges Bank’s rate path if they were to make one today, as changes in foreign rates, NOK and oil prices are treated quite mechanically by Norges Bank when they construct the rate path.”
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.