EUR/NOK re-sell above 9.40 – Danske Bank

Analysts at Danske Bank still see the Norwegian Krone appreciating in the next month, recommending at the same time selling occasional rallies.

Key Quotes

“We expect the market to move gradually towards Norges Bank’s MPR2/17 projection for 2019-10 on strong real growth numbers”.

“Higher wage growth supports our view of higher capacity utilisation”.

“As domestic inflation is picking up already, this reduces the risk of subdued inflation for a prolonged period. Inflation could be higher than Norges Bank expects”.

“Election 2017: increased probability that the current right wing government will stay in office as the Labour Party’s campaign fails to attract voters”.

“FX NOK strategy: fundamental predisposition to re-sell EUR/NOK above 9.40”.