EUR/NOK set to advance nicely towards the 10.40 mark – Danske Bank

EUR/NOK has again started to move higher the last month. Economists at Danske Bank continue to expect EUR/NOK to march forward over the coming year and reach the 10.40 level.

More upside in store for EUR/NOK

“We see the NOK potential exhausted on the back of a shift in the global investment environment, weaker growth, tighter global liquidity conditions, less fiscal NOK buying, positioning, year-end headwinds and NOK rates pricing. We thus maintain a negative view on NOK.”

“EUR/NOK has risen over the last month and in that light we lift the short-end of our forecast profile but leave the long-end unchanged forecasting 10.40 in 12 months.” 

“The biggest risk to our forecasts lies in global commodity prices. Should oil and gas prices continue higher while global risk appetite remains positive then we would expect EUR/NOK to trade below our forecasts. On the other hand, marked risk-off could trigger a larger-than-projected setback.”