SEK to remain negative, buy NOK on dips – Danske Bank

In opinion of Jens Sorensen, Chief Analyst at Danske Bank, occasional bullish attempts in EUR/NOK should be seen as buying selling opportunities, while prospects for SEK remain negative for the time being.

Key Quotes

“In the Scandies, we have as expected seen both EUR/NOK and EUR/SEK edge higher. For EUR/NOK our fundamental predisposition remains to re-sell the cross after having taken profit. Meanwhile, we still think it is a little too early as the combination of a thin domestic data calendar and external headwinds from growth moderation and trade war fears in our view leaves the NOK vulnerable to further profit taking”.

“For the SEK, the dividends season is now starting, which on balance could add a further argument to stay negative on the SEK as the payouts reflect net SEK selling in the coming month”.