Morten Helt, Senior Analyst at Danske Bank, noted the Norwegian Krone is poised to extend the rangebound theme for the time being.
“The bounce in EUR/NOK yesterday was driven mainly by a decline in the oil price and the cross now trades in the middle of the 9.47-9.75 range, which we expect to remain intact in the near term”.
“Mainland GDP released yesterday was very close to Norges Bank’s estimate from the latest monetary policy report and confirms that Norges Bank will deliver the announced rate hike ‘over the summer’.
“We still think EUR/NOK near term should be played tactically within the 126.96.36.199 range with the likes of positioning, Nibor fixings, global growth momentum and China weighing on commodity FX still representing headwinds to the NOK”.
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