NOK expected to appreciate further – Danske Bank

Pablo Piovano FXStreet

Kristoffer Lomholt, Senior Analyst at Danske Bank, assessed the positive outlook for the Norwegian Krone in the next months.

Key Quotes

“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”.

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 struggles aroound 1.1800 as USD stabilizes

EUR/USD stays defensive around 1.1800 in the European session on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony fails to impress Euro bulls.

GBP/USD drops toward 1.3500 as USD finds fresh demand

GBP/USD falls back toward 1.3500 in the European session on Thursday, snapping its recovery momentum. The pair loses traction as the US Dollar finds fresh demand, as markets turn cautious ahead of the US-Iran nuclear talks. The US trade policy uncertainty also remains a drag on risk sentiment.

Gold clings to gains amid sustained safe-haven flows ahead of US-Iran talks

Gold sticks to its modest intraday gains through the first half of the European session on Thursday, with bulls still awaiting a sustained move and acceptance above the $5,200 mark before placing fresh bets.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.