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