Chief Strategist at Danske Bank Valtteri Ahti assessed the recent developments around the British Pound.
Key Quotes
“The NOK was under pressure in yesterday’s afternoon trading”.
“NOK/SEK selling seems to be the main ‘culprit’, yet that leaves the question: if SEK weakness has driven the NOK lower in August, then surely a SEK rebound should also be supportive for the NOK?”.
“Our take is that this will eventually happen as the domestic news flow cannot justify NOK weakness”.
“Meanwhile for now, NOK/SEK continues to trade heavily and with the latest break of important support levels, the July bottom of 1.0725 seems an attractor. Also, keep an eye out for the 9.70-9.80 range in EUR/NOK”.
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