NOK strength should be temporary – Danske Bank

Mathias Mogensen, Analyst at Danske Bank, expects the Norwegian Krone to pick up face in the next months.

Key Quotes

“EUR/NOK temporarily spiked above 9.00 on Draghi’s comments that the ECB had not discussed QE extension but quickly fell back to the mid-8.90s again”.

“While downside momentum indeed seems strong at the moment, we still expect EUR/NOK to correct higher in the coming months”.

“We see risks skewed to the downside for the oil price in the coming months while seasonal effects in combination with poor liquidity are likely to weigh on NOK over the last months of the year”.