EUR/NOK risks further upside near term – Danske Bank

By FXStreet FXStreet (Edinburgh) – Arne Rasmussen, Chief Analyst at Danske Bank, sees the Norwegian krone losing further ground in the short term.

Key Quotes

“Norges Bank kept rates unchanged as expected yesterday, easing bias reiterated, and following the decision, we saw a relief rally in the NOK as some had expected a clear hint of a December cut”.

“In our view, however, this is NOT a game changer and it is not a trigger for continued NOK appreciation: we maintain our view that EUR/NOK risks remain skewed to the upside in the coming months on seasonality and the potential for more NB easing being priced in ahead of the December meeting”.

“We have lifted our 1M and 3M EUR/NOK forecasts to 9.40”.
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Source:: FX Street