Chief Analyst at Danske Bank Jens Sorensen sees the Norges Bank confirming its view of a rate hike in September at today’s meeting.
Key Quotes
“In the Scandi sphere, the NB meeting takes centre stage. As we expect NB to broadly ‘precommit’ to a September hike, an important fundamental trigger for the next leg lower in EUR/NOK could be delivered today”.
“Headwinds such as weaker global growth, a stronger USD and improved structural NOK liquidity remain present and thus we still recommend positioning for an eventual move lower in the cross via options”.
“EUR/SEK should follow suit if EUR/NOK sees the kneejerk reaction lower on NB that we look for”.
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