EUR/NOK still a sell on strength – Danske Bank

Arne Rasmussen, Chief Analyst at Danske Bank, keeps the constructive view for the Norwegian Krone in the next months.

Key Quotes

“Yesterday’s NOK session was dominated by the July inflation print and oil swings. While there will still be another CPI release (11 September) ahead of the next Norges Bank meeting (21 September), yesterday’s release confirmed that inflation will likely be a considerable positive factor for the next”.

“It is still too early to estimate the new rate path – especially as we will get other crucial data releases over the coming month – yet it is important to point out that the stronger NOK, at this stage, will actually cancel out the rate path impact from higher inflation. As such, we think this confirms our fundamental predisposition to await better entry levels before re-selling EUR/NOK”.

“The coming week is empty in terms of important domestic data releases. Hence, external developments (e.g. oil price) should set the tone for the NOK in the coming sessions. The next pivotal domestic releases will be the oil investment survey and Q2 GDP both due on 24 August”.

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.