15 Jun 2015
EUR/NOK seen lower, Norges Bank expected to cut rates – Danske Bank
FXStreet (Edinburgh) - Arne Rasmussen, Chief Analyst at Danske Bank, expects the Nordic central bank to cut rates at its meeting on Thursday and NOK to gather pace in the longer run.
Key Quotes
“In the last weeks EUR/NOK has overshot our 1M forecast of 8.65 on a somewhat perfect storm with significantly higher EUR-rates, substantially higher market volatility and a lower oil price”.
“Relative to Norges Bank’s projections economic data out of Norway have been mixed, yet on average support our (consensus) call for a 25bp rate cut on Thursday”.
“On the other hand, we believe that market pricing of future NB monetary policy is too dovish and we expect an upward revision of the rate path to support the NOK and send EUR/NOK lower”.
Key Quotes
“In the last weeks EUR/NOK has overshot our 1M forecast of 8.65 on a somewhat perfect storm with significantly higher EUR-rates, substantially higher market volatility and a lower oil price”.
“Relative to Norges Bank’s projections economic data out of Norway have been mixed, yet on average support our (consensus) call for a 25bp rate cut on Thursday”.
“On the other hand, we believe that market pricing of future NB monetary policy is too dovish and we expect an upward revision of the rate path to support the NOK and send EUR/NOK lower”.