EUR/NOK poised for further rangebound – Danske Bank

Kristoffer Lomholt, Senior Analyst at Danske Bank, sees the cross navigating between 8.80 and 9.00 in the next months.

Key Quotes

“The latest move lower in EUR/NOK seems slightly overdone according to the coinciding moves in near-term FX drivers. As a result we find it likely that the cross will take a ‘breather’ and settle in the 8.80-9.00 range over the coming months. Longer-term normalising growth, real rate spreads, oil markets and valuation forces should act as a drag on the cross, but we fear markets are too optimistic about the medium- to longterm outlook for the business cycle, which should limit the downside potential in H2 17”.

“We shift lower our EUR/NOK profile, forecasting the cross at 8.90 in 1M (from 9.00.), 8.80 in 3M (8.90), 8.70 in 6M (8.80) and 8.70 in 12M (unchanged)”.

 

    1. R3 8.9249
    2. R2 8.9121
    3. R1 8.8992
  1. PP 8.8864
    1. S1 8.8735
    2. S2 8.8607
    3. S3 8.8478

 

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 securities. 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 Forex 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.