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Mathias Mogensen, Analyst at Danske Bank, noted the 9.40 region should be quite a strong support for the cross in the near term.

Key Quotes

EUR/NOK price action has repeated itself recently with the cross rising moderately in the European session and then to be sold lower during US hours. This highlights foreigners’ renewed interest in the NOK while local importers utilise the cheaper levels to buy EUR”.

“We recognise that higher oil prices (primarily longer-dated contracts), a SEK revival and a weaker EUR are arguments for why EUR/NOK should break through the low end of its recent 9.47-9.75 range”.

“However, given the global environment (weaker growth, stronger USD) and the balance of risk related to markets’ Norges Bank pricing, we are struggling to turn very positive on the NOK at this stage. The low 9.40s provide a key set of support levels”.