EUR/NOK room for further upside, focus on Norges Bank – Danske Bank

According to Analyst at Danske Bank Mathias Mogensen, the cross could attempt a squeeze higher in the near term.

Key Quotes

“In the Scandi FX sphere, the main focus this week will be the Norges Bank (NB) meeting on Thursday, where we expect NB to lower its rate path for 2017 by 10-15bp and thereby imply almost a 100% probability of a rate cut next year”.

“We do not expect NB to cut further and we think that a dovish rate path along with the usual worsening of the liquidity situation going into end year could lead to some temporary upside support in EUR/NOK – especially after the past couple of days’ decline on the back of the OPEC deal”.