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11 Mar 2015
EUR/NOK points upwards in the near term – Danske Bank
FXStreet (Edinburgh) - In the view of analysts at Danske Bank, the cross could climb higher in the near term, as further easing is likely from the Norges Bank in its next meeting.
Key Quotes
“Yesterday the NOK weakened on the back of February’s slightly lower core inflation print at 2.4% y/y (DBM: 2.4%, consensus: 2.5%)”.
“Overall, the inflation number was in line with Norges Bank’s projections in its December monetary policy report and as the inflation outlook was partly suspended by Norges Bank back in December, this will of course not affect the decision next week where we still look for a 25bp rate cut”.
“EUR/NOK now trades close to our 1M forecast from 17 February at 8.65 but risk in our view remains on the upside for EUR/NOK, as lower interest rates could weigh further on the NOK in the near term”.
Key Quotes
“Yesterday the NOK weakened on the back of February’s slightly lower core inflation print at 2.4% y/y (DBM: 2.4%, consensus: 2.5%)”.
“Overall, the inflation number was in line with Norges Bank’s projections in its December monetary policy report and as the inflation outlook was partly suspended by Norges Bank back in December, this will of course not affect the decision next week where we still look for a 25bp rate cut”.
“EUR/NOK now trades close to our 1M forecast from 17 February at 8.65 but risk in our view remains on the upside for EUR/NOK, as lower interest rates could weigh further on the NOK in the near term”.