EUR/NOK downside appears shallow – Danske Bank

Arne Rasmussen, Head of FI Research at Danske Bank, gave his view on the recent price action around the Norwegian Krone.

Key Quotes

“EUR/NOK has erased the gains from the beginning of the week in a move that we attribute to i) yesterday’s manufacturing PMI release providing a well-needed break in the recent set of disappointing economic data releases, ii) the oil price setting a new yearly high, iii) general EUR-weakness and likely iv) investors seeing levels around 9.55 as attractive entry levels for a short EUR/NOK position given more balanced positioning”.

“EUR/NOK has now reached the low end of what we constitute to be the new 9.43-9.63 trading range. Hence in our view, the downside potential seems increasingly limited from a tactical perspective”.