20 Jun 2014
EUR/NOK to fall below 8.00 this year - UBS
FXStreet (Córdoba) - The UBS analyst team commented that they stick to their view EUR/NOK will fall below 8.00 later this year even after the Norges Bank postponed its forecast for the first rate rise to Q3 2016.
Key Quotes
“The Norges Bank surprised by postponing their forecast for their first rate hike to Q3 2016 (previously summer 2015)”.
“This was based on two factors: a lower outlook for interest rates in the euro, amongst others, and weaker expected oil investments. Given the uncertainty surrounding the latter, this move strikes us as overdone”.
“EUR/NOK jumped to 8.30, but unless we see confirmation for fundamentally lower growth potential, we stick to our view of EUR/NOK falling below 8.00 later this year”.
Key Quotes
“The Norges Bank surprised by postponing their forecast for their first rate hike to Q3 2016 (previously summer 2015)”.
“This was based on two factors: a lower outlook for interest rates in the euro, amongst others, and weaker expected oil investments. Given the uncertainty surrounding the latter, this move strikes us as overdone”.
“EUR/NOK jumped to 8.30, but unless we see confirmation for fundamentally lower growth potential, we stick to our view of EUR/NOK falling below 8.00 later this year”.