Kristoffer Lomholt, Senior Analyst at Danske Bank, assessed the positive outlook for the Norwegian Krone in the next months.
“Fundamentally, we still see an appealing case for why the NOK should strengthen over the coming year on not least broader based Norwegian growth, valuation and relative rates stemming from Norges Bank initiating a moderate hiking cycle”.
“Meanwhile, the fundamental case has been weakened slightly over the last month by global growth levelling off and domestic data disappointing slightly. Also tactically, positioning is becoming a headwind as investors have bought heavily into the case of a stabilising housing market and forthcoming rate hikes. This leaves the NOK vulnerable to profit taking and we therefore expect EUR/NOK to be range-trading near term”.
“In light of this we raise our 1M forecast to 9.60 (from 9.50) but leave the rest of the profile unchanged at 9.40 in 3M, 9.20 in 6M and 9.10 in 12M”.
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.