EUR/NOK risks further downside on oil – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, has assessed the recent strong performance of NOK bolstered by the recovery in oil prices.

Key Quotes

“EUR/NOK fell further on Tuesday following news that Russia and Saudi Arabia have reached consensus on an oil output freeze. Strong risk appetite and the sharp rise in the oil price are the driving forces behind the NOK rally”.

“Technically, the next near-term support level comes in at the year low at 9.2766. However, profit taking in long NOK positioning is likely to emerge ahead of the meeting in Doha on Sunday where OPEC and non-OPEC members are set to discuss a production freeze”.