NOK remains rangebound for the time being – Danske Bank

Analyst at Danske bank Aila Mihr sees the Norwegian Krone keeping the sideline theme unchanged in the near term horizon.

Key Quotes

“EUR/NOK is currently on a knife edge as further SEK or oil price support could trigger technical NOK buying interest amid a break of the important 9.47 support level (would open for test of low 9.40s)”.

“Meanwhile, we emphasise that we still see a range of NOK headwinds in the likes of the global outlook, Nibor fixings, the Norges Bank balance of risk, USD strength and to some extent positioning still”.

“As a result, we still think it is too early to turn strategically bullish on the NOK even if we technically could see some support to the Norwegian currency near term”.