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Senior Analyst at Danske Bank Jens Pedersen favoured further sidelining in EUR/NOK, likely between 9.47 and 9.75.

Key Quotes

“In the Scandies, today will bring both Norwegian credit figures and an announcement of the daily NOK purchases by Norges Bank. Normally, neither of these two releases are market movers but given the revised fiscal budget we could see Norges Bank announce a lower daily amount of c.700M (from 800M) which could trigger some NOK negative headlines”.

“Meanwhile, we stress that one should not be fooled by such news as a lower NB purchase amount is countered by larger NOK buying by petroleum companies in order to pay taxes”.

“We still think EUR/NOK is a 9.47-9.75 range play with risks skewed towards the top of the range near term”.