EUR/NOK potential for a tick higher near term – Danske Bank

Senior Analyst at Danske Bank Morten Helt believes the cross could attempt a move higher later in the session.

Key Quotes

“In Scandies, the stronger-than-expected Norwegian GDP numbers supported NOK yesterday and more than mitigated the impact of the slightly disappointing oil investment survey”.

“Consequently, EUR/NOK fell to the low end of the 9.25-9.40 range we highlighted EUR/NOK would trade in over the short term”.

“We see upside to the pair today from (1) the risk that Draghi will echo that EUR strength is not a worry for the ECB and (2) a setback in oil prices, as we see limited further near-term upside for oil prices”.

“Today, the oil market will monitor whether the drop in the US oilrig count last week was a one-off”.

“EUR/SEK broadly mirrored movements in EUR yesterday and will today likely continue to be influenced by positioning in EUR ahead of Draghi’s speech tonight”.