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20 May 2015
EUR/NOK at 8.55 in 1-month – Danske Bank
FXStreet (Edinburgh) - Jens Pedersen, Senior Analyst at Danske Bank, argued the Norges Bank could still cut rates at the June meeting, sending the cross higher.
Key Quotes
“Today focus will turn to the NOK with Norwegian Q1 GDP figures due for release”.
“While our expectation for mainland GDP growth is closely in line with market expectations, a weak number today may trigger the re-pricing that we expect ahead of the 18 June Norges Bank meeting”.
“We firmly expect Norges Bank to cut the sight deposit rate by 25bp next month and still regard governor Olsen’s comments at the 7 May meeting as very dovish”.
“Yet markets still price less than a 50% probability of a June cut. We target EUR/NOK at 8.55 in 1M”.
Key Quotes
“Today focus will turn to the NOK with Norwegian Q1 GDP figures due for release”.
“While our expectation for mainland GDP growth is closely in line with market expectations, a weak number today may trigger the re-pricing that we expect ahead of the 18 June Norges Bank meeting”.
“We firmly expect Norges Bank to cut the sight deposit rate by 25bp next month and still regard governor Olsen’s comments at the 7 May meeting as very dovish”.
“Yet markets still price less than a 50% probability of a June cut. We target EUR/NOK at 8.55 in 1M”.