NOK stance remains positive in the short term – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, keeps the constructive tone on the Norwegian Krone in the near term.

Key Quotes

“In terms of the NOK, we have turned a little more positive in recent weeks even if we still emphasise a cautious tactical stance in terms of the spot outright”.

“External factors remain NOK headwinds but given last week’s move and the decoupling between EUR/NOK rates, we now see strategic value in selling a 6M risk reversal (cost neutral)”.

“Near term, Wednesday’s house price release out of Norway is the biggest risk factor, but from a risk reward perspective, we prefer to put this strategic trade on now”