NOK: short-term potential limited – Danske Bank
|Krsitoffer Lomholt, Senior Analyst at Danske Bank, gives his views on the Norwegian Krone.
Key Quotes
“We still think the relative growth picture, the positive terms of trade shock (higher oil prices) and a Norges Bank set to initiate a moderate hiking cycle should support a stronger NOK this year. However, in the near term, the NOK faces real headwinds, which limits the short-term potential”.
“In addition, given that markets are already pricing in a September hike with a high probability, which creates an asymmetric balance of risk towards further data disappointments, better-than-expected data will not lead markets to price in more for September at this stage whereas further disappointments would trigger a postponement of the expected first rate hike. In light of the recent data disappointments and headwinds we raise our 6M forecast to 9.30 (9.20 previously) and 12M forecast to 9.20 (9.10), but leave our 1M and 3M forecasts unchanged at 9.60 and 9.40, respectively”.
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.