EUR/NOK still seen rangebound – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, noted the cross is expected to keep the sideline theme for the time being.

Key Quotes

“EUR/NOK has moved to the low end of the 9.43-9.63 range on the back of broader-based EUR weakness, the oil price rallying and probably also a delayed reaction to Friday’s strong set of domestic labour- and housing market data”.

“We estimate that NOK positioning turned neutral last week, which naturally leaves NOK sensitivity to news more balanced than previously”.

“Meanwhile, we still think the low end of the EUR/NOK range will hold – even if today’s manufacturing print is likely to confirm that a disturbed seasonal pattern in August was behind last month’s disappointing print. As a result, our tactical predisposition remains to play the range and hence pick-up the cross from current levels for a move towards the mid 9.50’s”.