EUR/NOK room for a test of 9.50 – Rabobank

Senior FX Strategist at Rabobank Jane Foley suggested NOK could strengthen further in the next months, targeting 9.50 vs. the euro and 7.50 vs. the buck.

Key Quotes

“Although the value of the NOK strengthened vs. the EUR in 2016, EUR/NOK has been mostly trending higher since early 2013”.

“Although the looser monetary conditions implies by a weak currency and a low interest rates have not propelled CPI inflation higher, Norges Bank rhetoric suggests that it is on the cusp of raising rates”.

“We are optimistic that the NOK has the capacity to win back some ground this year and edge towards the EUR/NOK9.50 area by the end of the year. That said, we would favour buying NOK on dips vs the USD. We see scope for a move towards USD/NOK7.50 on a 12mth view”.