19 Oct 2015
EUR/NOK seen at 8.80 in 12-month – Danske Bank
FXStreet (Edinburgh) - Analyst Kristoffer Lomholt at Danske Bank, sees the cross heading towards the 8.80 area in a year’s time.
Key Quotes
“While we expected the NOK to weaken on a NB September rate cut, improved risk sentiment, a higher oil price and a more expansionary fiscal budget than what we had expected has triggered a EUR/NOK fall”.
“We do, however, maintain the view that risks are skewed to the upside as we approach year-end, when NOK liquidity tends to worsen”.
“The NOK remains very cheap which together with a reversal of bearish speculative NOK-bets should become a NOK positive when the business cycle turns”.
“We leave our 6-12M forecasts unchanged at 9.25 in 6M and 8.80 in 12M but lower our 1M and 3M forecast to 9.30 (both from 9.40)”.
Key Quotes
“While we expected the NOK to weaken on a NB September rate cut, improved risk sentiment, a higher oil price and a more expansionary fiscal budget than what we had expected has triggered a EUR/NOK fall”.
“We do, however, maintain the view that risks are skewed to the upside as we approach year-end, when NOK liquidity tends to worsen”.
“The NOK remains very cheap which together with a reversal of bearish speculative NOK-bets should become a NOK positive when the business cycle turns”.
“We leave our 6-12M forecasts unchanged at 9.25 in 6M and 8.80 in 12M but lower our 1M and 3M forecast to 9.30 (both from 9.40)”.