EUR/NOK expected to trade within 9.47-9.75 range – Danske Bank

Arne Rasmussen, Chief Analyst at Danske Bank, assessed the prospects for the Norwegian Krone in the next weeks.

Key Quotes

“For the NOK, we are now approaching the start of the Norwegian dividend season, which means a period of net NOK selling. In isolation, that supports the idea of a NOK vulnerable to near term profit taking from accounts that have been net long the Norwegian currency. Indeed, we have seen foreign accounts sell the NOK recently”.

“However, we do not want to overdo the impact of the dividend season as (1) Norwegian ownership is high, (2) payout amounts are relatively small, (3) some dividends actually imply NOK buying and finally (4) amounts can easily have been hedged at other times than on the ex or pay-out date”.

“We still see EUR/NOK as a near-term 9.47-9.75 range play”.