25 Feb 2016
EUR/NOK points to 9.10 in 12-month – Danske Bank
Kristoffer Lomholt, Analyst at Danske Bank, believes the krone could regain traction to the 9.10 area in a year’s time.
Key Quotes
“As we are very cautious on risk assets short term and as we see downside to short-term NOK rates, we think EUR/NOK risks are skewed on the upside in coming month”.
“Consequently, we lift our 1M and 3M forecasts to 9.70 (previously 9.60). While large intraday swings in the oil price, together with poor NOK liquidity, allows for large intraday swings, we still expect the NOK to trade at weak levels until the business cycle turns and Norges Bank can signal that there is no longer a need to cut rates further”.
“We forecast EUR/NOK at 9.40 in 6M (9.30) and 9.10 in 12M (9.00)”.
Key Quotes
“As we are very cautious on risk assets short term and as we see downside to short-term NOK rates, we think EUR/NOK risks are skewed on the upside in coming month”.
“Consequently, we lift our 1M and 3M forecasts to 9.70 (previously 9.60). While large intraday swings in the oil price, together with poor NOK liquidity, allows for large intraday swings, we still expect the NOK to trade at weak levels until the business cycle turns and Norges Bank can signal that there is no longer a need to cut rates further”.
“We forecast EUR/NOK at 9.40 in 6M (9.30) and 9.10 in 12M (9.00)”.