EUR/NOK still seen lower in the next months – Danske Bank

The Norwegian Krone is expected to gather further ground in the medium term, according to Allan von Mehren, Chief Analyst at Danske Bank.

Key Quotes

“EUR/Scandies have so far – and should in our view continue to – be relatively unscathed by the lira crisis given the countries’ limited direct exposure to Turkey”.

“Notably, NOK found renewed support on Friday as core inflation beat estimates and as details confirmed that underlying inflation pressure is building in Norway. This is a key reason why we expect Norges Bank to reiterate its September hike signal later this week irrespective of global political developments”.

“We thus remain bullish on the NOK and expect EUR/NOK to take the next move lower over the coming 1 -3 months”.