EUR/NOK seen higher by year-end – Danske Bank

Pablo Piovano FXStreet

Senior Analyst at Danske Bank Kristoffer Lomholt believes the cross could edge higher heading into year-end.

Key Quotes

“Since the summer, we have argued that the potential for a further EUR/NOK move lower in 2017 was increasingly limited on the back of, for example, the outlook for relative rates, the oil price, seasonality and speculative positioning. With the latest set of disappointing economic data releases, we think this case has been strengthened. In addition, the 2018 fiscal budget was a potential NOK positive but at a fiscal impulse of 0.1pp, it turned out neutral”.

“We maintain EUR/NOK is a range play in the very near term but still pencil in upside for the cross going into year-end. We now forecast the cross at 9.40 in 1M (unchanged), 9.50 in 3M (unchanged), 9.20 in 6M (from 9.10) and 9.10 in 12M (9.00)”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.