Strategist Vladimir Miklashevsky at Danske Bank noted the cross should need extra EUR-weakness to resume the down move.
Key Quotes
“EUR/NOK is firmly back above 9.45 as trade war concerns have halted the impulse lower otherwise provided by Norges Bank last week. However, the recent price action in NOK/SEK clearly hints that in the current environment of lingering trade worries, SEK is the more vulnerable of the two due to Swedish exposure to the global manufacturing cycle”.
“Meanwhile, it is also likely that for EUR/NOK downside to materialise again short term, we will need more pronounced EUR weakness and not just USD strength as long as global growth concerns remain as the latter have been a key NOK headwind lately”.
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