EUR/NOK: Neutral view targeting the 9.80 level – Credit Suisse

The risk-reward of being long NOK has deteriorated, in the view of economists at Credit Suisse. Subsequently, they adopt a neutral view on EUR/NOK, targeting 9.80, from 9.40 previously.

Risk-reward of being long NOK is unfavourable

“We think now think that the risk-reward of being long NOK has deteriorated, in line with lower energy prices.”

“It remains unlikely that the Norges Bank will upgrade its current rate path guidance markedly.”

“We now adopt a neutral view on EUR/NOK, targeting 9.80, from 9.40 previously.”