2 Jul 2014
EUR/NOK remains sidelined – Danske Bank
FXStreet (Edinburgh) - The EUR/NOK would extend its sideline pattern at current levels, as observed by Anders Fischer, Analyst at Danske Bank.
Key Quotes
“EUR/NOK continued to trade higher yesterday as Norwegian manufacturing PMI in contrast to consensus expectations did not rebound following the decline in May, increasing the downside risk for the manufacturing sector”.
“However, we still believe that the Norwegian economy will not weaken and in general we think that the market’s pricing of Norges Bank has become too dovish”.
“However, at the same time we also acknowledge that there is a risk that the market’s appetite for NOK could remain low for a while – also after the Riksbank meeting tomorrow”.
“Hence, we still prefer to stay sidelined in EUR/NOK, although from a fundamental point of view we see value in being short EUR/NOK at the current level”.
Key Quotes
“EUR/NOK continued to trade higher yesterday as Norwegian manufacturing PMI in contrast to consensus expectations did not rebound following the decline in May, increasing the downside risk for the manufacturing sector”.
“However, we still believe that the Norwegian economy will not weaken and in general we think that the market’s pricing of Norges Bank has become too dovish”.
“However, at the same time we also acknowledge that there is a risk that the market’s appetite for NOK could remain low for a while – also after the Riksbank meeting tomorrow”.
“Hence, we still prefer to stay sidelined in EUR/NOK, although from a fundamental point of view we see value in being short EUR/NOK at the current level”.