EUR/NOK expected to rebound towards 9.2200 – Danske Bank

Senior Analyst at Danske bank Jens Sorensen has recommended buying the cross, targeting a potential up move to the 9.22 area.

Key Quotes

“EUR/NOK continued to trade at a relatively low level around 9.01-9.04 yesterday”.

“In our view, EUR/NOK at this level seems excessive even though we have a strategic long-term bullish view on NOK”.

“Our sceptical view on the impact on the oil price from OPEC’s intention to cut output along with positioning, technical levels and our short-term fair value estimate suggest that we could see a tactical rebound in EUR/NOK”.

“Yesterday, we therefore sent out a recommendation to buy EUR/NOK spot targeting 9.2200”.