NOK will remain vulnerable – Danske Bank

The NOK followed SEK’s suit and also came under pressure on Friday, which illustrates an important point that the NOK will remain vulnerable this side of New Year as key NOK buyers leave the market; Friday was for instance the last day where Norges Bank (NB) was active in FX markets in 2017, suggests the research team at Danske Bank.

Key Quotes

“We still think that the monetary policy message given by NB on Thursday was important for our call that the NOK should move higher next year. The data calendar for Norway is very thin for the remainder of the year. The only noteworthy release this week is Friday’s NAV unemployment report where we pencil in another strong report, indicating above-trend growth and higher capacity utilisation.”