FXStreet (Edinburgh) – Jane Foley, Senior Currency Strategist at Rabobank, sees the pair heading back towards the 8.40 area in the near term.
Key Quotes
“On the assumption that oil prices retain their current improved tone and another negative shock to the Norwegian economy is avoided, we would expect any rate cut on June 18 to be followed a period of steady policy”.
“The Norges Bank’s import weighted krone is well off its 2013 January high and has in recent months been traded at its softest levels since 2009 suggesting relatively accommodative monetary conditions”.
“Signs of reflation in the Eurozone economy should also bring support to the Norwegian economy”.
“While EUR/NOK may press higher into the June 18 Norges Bank meeting we expect that upside potential is likely to soon run out of steam under the weight of the ECB’s asset purchase programme”.
“We look for a return to the EUR/NOK8.40 area on a 3 mth view”.
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