EUR/NOK could break below the prevailing range – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees some downside potential for the cross in the near term.

Key Quotes

“In terms of the NOK, the last sessions’ Norwegian releases (registered labour market report, house prices etc.) are pointing to Norges Bank hiking rates in September”.

“Meanwhile, EUR/NOK has not broken through the low end of the 9.47-9.75 range, which to us highlights how external factors in the likes of not least weaker growth and a stronger USD remain headwinds for the NOK”.

“However, domestic developments have increased the likelihood of EUR/NOK breaking lower”.