18 Aug 2015
EUR/NOK points to 8.70 in 6-month – Danske Bank
FXStreet (Edinburgh) - Analyst at Danske Bank Kristoffer Lomholt sees the cross around the 8.70 area in the medium term.
Key Quotes
“EUR/NOK has suffered from a perfect storm in the last few months (oil prices collapsing again, dovish NB, poor liquidity) which has sent the Norwegian currency to historically weak levels”.
“Importantly, from most fundamental perspectives the NOK is very cheap which together with stretched speculative positioning should limit the downside potential”.
“In light of our substantial downward forecast revision to oil prices we lift our EUR/NOK forecasts to 9.10 in 1M (8.90), 8.90 in 3M (8.70), 8.70 in 6M (8.50) and 8.50 in 12M (8.40)”.
Key Quotes
“EUR/NOK has suffered from a perfect storm in the last few months (oil prices collapsing again, dovish NB, poor liquidity) which has sent the Norwegian currency to historically weak levels”.
“Importantly, from most fundamental perspectives the NOK is very cheap which together with stretched speculative positioning should limit the downside potential”.
“In light of our substantial downward forecast revision to oil prices we lift our EUR/NOK forecasts to 9.10 in 1M (8.90), 8.90 in 3M (8.70), 8.70 in 6M (8.50) and 8.50 in 12M (8.40)”.