EUR/NOK points upwards near term – Danske Bank

Analyst at Danske Bank Kristoffer Lomholt sees the NOK vulnerable in the short run.

Key Quotes

“We think the short-term risks – not least up until the EU referendum - remains skewed to the upside as the NOK is no longer a safe-haven currency and as the oil price remains vulnerable to global demand shocks which a ‘Brexit’ would constitute”.

“Having said this we maintain that even under a ‘Bremain’ scenario the downside potential remains limited as the fundamental outlook for a significant short-term NOK appreciation is still not present”.

“Indeed, NB could well remind markets of the need for a weak currency at the forthcoming June meeting by signaling what we expect will constitute the final rate cut in September”.