EUR/NOK still sees higher despite positive data – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj expects the cross to edge higher in the coming months backed by a looser monetary stance by the Norges Bank.

Key Quotes

“Norwegian Q1 GDP data released yesterday was stronger than expected, and we are left with high inflation, strong housing prices and domestic growth on the upside and the elevated money market spread on the downside ahead of the Norges Bank-meeting on 22 September”.

“However, we stick to our non-consensus view that the change in the outlook since June is insufficient to turn Norges Bank from a strong easing bias to an actual tightening”.

“Hence, we still see risks tilted to the upside for EUR/NOK ahead of the 22 September. Important data in the coming weeks which could alter our view will be inflation figures (9 September), the Regional survey (13 September) and maybe housing prices (5 September)”.