9 May 2014
EUR/NOK may continue to weaken - UBS
FXStreet (Córdoba) - The UBS analyst team commented that EUR/NOK should see more downside if the Norwegian economy continues to surprise positively.
Key Quotes
“This Thursday the Norges Bank kept its policy rate stable and said that economic developments have been in line with their expectations”.
“Still, EUR/NOK fell below 8.20, likely driven by strong March manufacturing data, but also by the ECB's hint at easing at next month's meeting”.
“We expect limited potential for further Norges Bank hawkishness, as inflation should fall in coming months, but the risks of more EUR/NOK downside would increase, if the economy continues to surprise positively”.
Key Quotes
“This Thursday the Norges Bank kept its policy rate stable and said that economic developments have been in line with their expectations”.
“Still, EUR/NOK fell below 8.20, likely driven by strong March manufacturing data, but also by the ECB's hint at easing at next month's meeting”.
“We expect limited potential for further Norges Bank hawkishness, as inflation should fall in coming months, but the risks of more EUR/NOK downside would increase, if the economy continues to surprise positively”.