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23 Jan 2015
EUR/NOK and EUR/SEK pointing south – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank revised lower their forecasts for the Norwegian krone and the Swedish krona vs. the euro, following the SNB and ECB moves.
Key Quotes
“NB is likely to respond to this by cutting rates in March and the market will price in that NB will cut rates further following the meeting”.
“This should mitigate any NOK strength in coming months”.
“On 6-12 months, we expect EUR/NOK to fall sharply, with NB having finished cutting rates and ECB QE continuing to be playing out”.
“While further easing from the Riksbank can not be ruled out, it will, in our view, be less aggressive than the ECB. Importantly, we are convinced that the RB will abstain from any currency interventions”.
“On a 3-12M basis, we think that risks in EUR/SEK are skewed to the downside with support from growth and monetary policy divergence”.
Key Quotes
“NB is likely to respond to this by cutting rates in March and the market will price in that NB will cut rates further following the meeting”.
“This should mitigate any NOK strength in coming months”.
“On 6-12 months, we expect EUR/NOK to fall sharply, with NB having finished cutting rates and ECB QE continuing to be playing out”.
“While further easing from the Riksbank can not be ruled out, it will, in our view, be less aggressive than the ECB. Importantly, we are convinced that the RB will abstain from any currency interventions”.
“On a 3-12M basis, we think that risks in EUR/SEK are skewed to the downside with support from growth and monetary policy divergence”.