EUR/NOK seen rangebound near term – Danske Bank

Arne Rasmussen, Head of FI Research at Danske Bank, noted the Norwegian Krone could attempt some consolidation vs. the single currency in the near term.

Key Quotes

“In the Scandies, yesterday’s session is likely to have proven that domestic names are the only real SEK buyers (holiday in Sweden), with foreign names selling SEK in thin markets”.

“To begin with the NOK was remarkably stable – probably since NOK/SEK also saw renewed buying interest. However, later in the session, EUR/NOK also took a move higher into the 9.70s”.

“The relative PMI release today is more important for the NOK than it is for the SEK and if we are right in our call, we could see EUR/NOK erase some of yesterday’s gains”.

“For now, we stick to our call that EUR/NOK is a range play whereas EUR/SEK is a buy-on-dips despite stretched momentum signals”.