28 May 2014
EUR/NOK sell on rallies – Danske Bank
FXStreet (Edinburgh) - According to Flemming Nielsen, Senior Analyst at Danske Bank, bullish attempts in the cross would be selling opportunities.
Key Quotes
“In Scandinavia focus turns to the Norwegian retail sales numbers. In line with consensus we look for a setback in April after the strong numbers in Q1”.
“We would sell into any spike in that cross ahead of the ECB meeting, as we believe that short EUR/NOK could be a constructive way of positioning in the FX market for a soft ECB next week, as we strongly doubt the market will start to price rate cuts in Norway contrary to what we are seeing in Sweden”.
“In respect of Sweden, keep an eye on household lending. However, given that focus is now on inflation at the Riksbank the market impact should be limited”.
Key Quotes
“In Scandinavia focus turns to the Norwegian retail sales numbers. In line with consensus we look for a setback in April after the strong numbers in Q1”.
“We would sell into any spike in that cross ahead of the ECB meeting, as we believe that short EUR/NOK could be a constructive way of positioning in the FX market for a soft ECB next week, as we strongly doubt the market will start to price rate cuts in Norway contrary to what we are seeing in Sweden”.
“In respect of Sweden, keep an eye on household lending. However, given that focus is now on inflation at the Riksbank the market impact should be limited”.