EUR/NOK still a sell on rallies – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, noted occasional rallies in the cross are still viewed as selling opportunities.

Key Quotes

“We still see EUR/NOK as vulnerable to the topside on the back of a thin NOK calendar, Easter coming up and technicals paving a setup for profit taking”.

“Also, we still think the global environment could be challenging for the NOK in the weeks to come amid the global cycle losing further momentum and the risk of trade wars looming”.

“Last Friday, we took profit on our short EUR/NOK position. Our fundamental predisposition remains to re-enter a short position on spikes being higher but for now, we prefer to stay sidelined, awaiting better entry levels”.