EUR/NOK likely to navigate between 8.90 and 9.15 – Danske Bank

Senior Analyst at Danske Bank Pernille Henneberg sees the cross meandering between 8.90 and 9.15 for the time being.

Key Quotes

“EUR/NOK had a volatile session yesterday with first the lower-than-expected core inflation print out of Norway and later speculations that Russia will freeze/cut oil production”.

“In our view, the core inflation print of 2.9% y/y (relative to Norges Bank’s projection of 3.3%) is not an argument for Norges Bank cutting rates”.

“Instead, it removed remaining fears of cost-push inflation spirals and hints at an earlier-than-projected drop in inflation as the NOK effect on imported inflation falls out”.

“In a ‘Norway-thin’ calendar for the rest of the week, we expect the oil price and adjustments to speculative NOK/SEK positions to set the tone for EUR/NOK, with 8.90-9:15 constituting strong support/resistance levels”.