Stay short EUR/NOK – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank, still sees potential for extra gains in the Norwegian Krone.

Key Quotes

“In the Scandi sphere, the NOK keeps edging higher, with most notably NOK/SEK now seemingly breaking above 1.06”.

“Previously, this level has triggered selling interest and, in our view, a sustainable break is a prerequisite for more NOK strength including EUR/NOK breaking below the 9.5262 support level, which should open the way for a testing of the mid- to low 9.40s”.

“We like both the tactical and strategic arguments for being long NOK and remain short EUR/NOK and long NOK/SEK”.