5 Nov 2015
NOK expected to pick up pace by year-end – BAML
FXStreet (Edinburgh) - According to BofA Merrill Lynch Global Research, the Norwegian krone is seen significantly undervalued at current levels, and might gather traction towards the end of 2015.
Key Quotes
“Our year-end forecasts appear a bit far away as renewed oil price weakness dragged NOK lower”.
“We acknowledge the downside risks to our NOK view, but hold stead for now, keeping our year-end EUR/NOK forecast at 9.15 given our commodity team’s outlook of a bounce in oil prices into year-end, as well as expectations for significant easing from the ECB in December”.
“NOK also looks significantly undervalued from a fundamental perspective as well as relative to long term averages”.
Key Quotes
“Our year-end forecasts appear a bit far away as renewed oil price weakness dragged NOK lower”.
“We acknowledge the downside risks to our NOK view, but hold stead for now, keeping our year-end EUR/NOK forecast at 9.15 given our commodity team’s outlook of a bounce in oil prices into year-end, as well as expectations for significant easing from the ECB in December”.
“NOK also looks significantly undervalued from a fundamental perspective as well as relative to long term averages”.