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EUR/NOK has traded in the 11.10-11.30 range over the last week with a notable higher correlation to the longer-end of the oil curve, economists at Danske Bank inform.

Key quotes 

“It is when the oil curve is moved by global demand-related factors that oil price changes have a big impact on NOK FX.” 

“The most important implication of the OPEC++ deal is that it removes the near-term possibility of a price war. Now the supply outlook looks more predictable, which will leave oil prices in the hands of demand and the eventual reopening of economies.”

“We maintain our cautious bullish NOK view.”