EUR/NOK expected to stay within range - Danske Bank

In opinion of Jens Pedersen, Senior Analyst at Danske Bank, the cross should remain well within range following today’s rate decision by the Norges Bank.

Key Quotes

“If we are right in our (consensus) call on Norges Bank, EUR/NOK is unlikely to move much on today’s announcement”.

“As a result we think the EUR/NOK price action is likely to be that of an initial dip on announcement followed by a rebound to close-to-unchanged levels as markets digest the statement”.

“Otherwise the cross will continue to follow movements in the oil price and with renewed focus on OPEC details, or lack thereof, we still expect EUR/NOK to correct higher before year-end”.

“Also, seasonal year-end effects in combination with worsening NOK liquidity are likely to weigh on the NOK. Since 2001 EUR/NOK has typically moved roughly 2% higher in November and December”.