NOK hinges on crude oil dynamics – Danske Bank

The Norwegian Krone remains to the mercy of crude oil dynamics for the time being, noted Christin Tuxe, Chief Analyst at Danske Bank.

Key Quotes

“We will not receive any important news about the Norwegian economy before

Friday’s labour market and retail sales data. Until then, NOK is likely to be in the hands of oil prices”.

“Although the rally in oil prices has taken a step too far, in our view, we recognize that sentiment in the oil market is bullish now. In particular, we note that oil prices have been relatively immune to the recent move higher in USD. A pickup in US crude stocks in API stock data due tonight or the EIA inventory data tomorrow or news that softens the outlook for a potential repeal of Iran nuclear deal may change that and lead to a rebound in EUR/NOK”.