EUR/NOK seen grinding lower – Danske Bank

Senior Analyst at Danske Bank Kristoffer Lomholt believes the Norwegian Krone is poised for further appreciation in the next months.

Key Quotes

“We think that Norges Bank initiating its hiking cycle marks an important fundamental trigger for sending EUR/NOK the next leg lower”.

“Meanwhile, we still emphasise that the headwinds that we have been highlighting over the past months – not least weaker global growth, a stronger USD and improved structural NOK liquidity – remain present, which limits the downside potential”.

“We ‘roll’ our forecast profile, lowering our 1M forecast to 9.40 (from 9.60) and our 3M forecast to 9.30 (9.40). We leave our 6M and 12M forecasts unchanged at 9.30 and 9.20, respectively”.