Further NOK appreciation stays on the cards – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, expects the Norwegian Krone to trade higher in the next months.

Key Quotes

“In Scandies, EUR/NOK fell on Friday in sympathy with higher oil prices and a weaker euro”.

“This week’s key event is July inflation data due on Thursday where we expect core CPI to come out at 0.6% m/m, 1.5% y/y”.

“Fundamentals in Norway are strong and we expect gradual NOK appreciation over the medium- to long-term”.

“EUR/SEK also fell on Friday a few figures ahead of the important resistance at 9.65. We expect July CPIF due on 15 August to come out substantially above the Riksbank’s expectations. This should cap any EUR/SEK rally. As such, we expect EUR/SEK to trade within a relatively narrow 9.50-9.65 range near-term”.