NOK-longs will have to wait – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, believes NOK could barely react to another ‘on-hold’ stance by the Norges Bank at its meeting later in the week.

Key Quotes

“We expect EUR/NOK to remain little changed on the announcement with risks skewed towards a modest rise”.

“We do not yet think the fundamental outlook for a significant NOK appreciation is present”.

“In the short term we recommend utilising spikes higher in EUR/NOK by increasing medium- to long-term NOK-exposure”.