Mikael Milhoj, Senior Analyst at Danske Bank, noted investors started to price in a rate hike by the Nordic central bank in September.
Key Quotes
“In the Scandies, we have been talking continually about challenging external factors, not least of all for NOK“.
“Meanwhile, we are now entering the final key phase ahead of the June Norges Bank meeting, which will decide whether Norges Bank will stick to its “hike in September” message”.
“The key releases are the registered labour market report (due today), inflation (11 June) and the regional network survey (12 June). Importantly, markets are already pricing in a September hike with a high probability, leaving the balance of risk asymmetrically skewed towards a weaker NOK in our view”.
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