EUR/NOK still seen lower – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, expects further appreciation of the Norwegian Krone in the next months.

Key Quotes

“In the Scandies, the weekly flow data released yesterday by Norges Bank showed that foreign banks (proxy for speculative flows) last week net bought NOK for the fourth consecutive week”.

“Meanwhile the release also confirmed our expectation of NOK purchases losing momentum as last week’s buying amounted to a mere NOK565M”.

“We still look to sell EUR/NOK but from current levels we do not like the near-term risk/reward”.