NOK could edge higher near term – Danske Bank

Arne Rasmussen, Chief Analyst at Danske Bank, sees the likeliness of NOK gathering some traction in the very near term.

Key Quotes

“In Norway, EUR/NOK has edged lower aided by short-covering in NOK/SEK post the Riksbank’s message”.

“On the domestic front, the LFS labour market report released yesterday had some positive aspects. While the unemployment rate (as expected) rose to 4.3%, the rise was driven by a higher labour force as employment rose”.

“Moreover, the Norges Bank lending survey showed a significant tightening of credit standards, which is a key factor for why we expect house price growth to ease in the coming months”.

“Today, we have a very tight data calendar in Norway with retails sales, Norges Bank FX sales, NAV unemployment and a phone update to the Regional Network Suvery (very short version of regular update). We see some upside risk to NOK on the releases”.