EUR/NOK still a sell around 9.40 – Danske Bank

Chief Analyst at Dasnke Bank Christin Tuxen, noted the positive prospects for the Norwegian Krone still remain in place.

Key Quotes

“EUR/NOK spiked higher on risk sentiment souring and oil price weakness towards the end of last week. We have previously noted that we see spikes in the cross towards 9.40 as attractive entry levels for shorts conditional on no fundamental changes along the way higher”.

“However, given current market focus/risk we would prefer to await a stabilisation in sentiment before reselling the cross”.

“Also note that USD50/bbl has been a critical pivot level for the oil price relative to the NOK in recent years. Hence, preferably we would like to see Brent crude dip below 50 alongside a stabilisation in North Korean risk before re-selling”.