EUR/NOK upside overdone? – Danske Bank

Analyst at Danske Bank Mathias Mogensen assessed the recent price action around the Norwegian Krone.

Key Quotes

“Yesterday saw EUR/NOK rise to the high end of the 9.25.9.40 range. While the rise benefits our bullish EUR/NOK position from Reading the Markets Norway, we think the move seems slightly overdone given the coinciding moves in not least the oil price”.

“It could suggest some specific flows have gone through and as such we do not expect EUR/NOK to break above the range in today’s session”.

“In terms of the SEK, today’s labour market report is notoriously volatile and one should probably fade any initial spot (over-) reaction. We still think EUR/SEK is a 9.50-9.65 range play”.