Stay long NOK for the time being – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren keeps the positive view on the Norwegian Krone for the next months.

Key Quotes

“In Norway, yesterday’s TBU wage report did not add a bullish NOK argument, but we still see a list of compelling reasons for staying long NOK, among other things relative growth, valuation, positioning, terms-of-trade, relative rates and the global picture”.

“We remain long NOK/SEK and short EUR/NOK. Notably, EUR/SEK remains in a firm uptrend, where 10.00 is now the first support and 10.08 the next key resistance”.

“We expect this week’s batch of Swedish data to be decent and as such the cross may be prone to downside corrections; this would in our view simply offer more attractive levels to enter long positions. In particular, watch NIER numbers and household lending data today followed by Q4 GDP tomorrow”.