16 Jun 2015
EUR/NOK seen at 8.60 in 1-month – Danske Bank
FXStreet (Edinburgh) - In the view of Analyst Kristoffer Lomholt at Danske Bank, the cross could head towards the 8.60 area in a month’s time.
Key Quotes
"EUR/NOK has overshoot our 1M forecast due to a somewhat perfect storm with significantly higher EUR-rates, substantially higher market volatility and a lower oil price”.
“Relative to NB’s projection economic data out of Norway have been mixed, yet on average support our (consensus) call for a 25bp sight deposit rate cut on Thursday”.
“On the other hand, we believe that market pricing of future NB monetary policy is too dovish and we expect and upward revision of the new rate path on Thursday to support the NOK and send EUR/NOK lower towards our 1M target of 8.60”.
“Post June we think the end of Norges Bank easing together with ECB QE will drag the cross lower. We still target EUR/NOK at 8.45 in 3M, 8.25 in 6M and 8.15 in 12M”.
Key Quotes
"EUR/NOK has overshoot our 1M forecast due to a somewhat perfect storm with significantly higher EUR-rates, substantially higher market volatility and a lower oil price”.
“Relative to NB’s projection economic data out of Norway have been mixed, yet on average support our (consensus) call for a 25bp sight deposit rate cut on Thursday”.
“On the other hand, we believe that market pricing of future NB monetary policy is too dovish and we expect and upward revision of the new rate path on Thursday to support the NOK and send EUR/NOK lower towards our 1M target of 8.60”.
“Post June we think the end of Norges Bank easing together with ECB QE will drag the cross lower. We still target EUR/NOK at 8.45 in 3M, 8.25 in 6M and 8.15 in 12M”.