EUR/NOK: More downside – Danske Bank

EUR/NOK continues to feel heavy even on days with limited news flow and flat-to-sour risk appetite, according to Danske Bank.

Key quotes

“Tuesday’s revised fiscal budget showed a further rise in the estimated NOK buying need of NOK37.5bn.” 

“We expect the NOK buying amount to rise substantially later this month when the government is likely to present a phase-3 stimulus package.”

“As long as COVID19 news does not sour significantly, we favour more EUR/NOK downside.”