NOK remains a buy on dips – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, reiterated occasional dips in the Norwegian Krone remain buying opportunities.

Key Quotes

“NOK came under pressure yesterday with no evident drivers. We know large 1.0750, 1.0775 strikes are running off in NOK/SEK today which was one reason for taking profit on our long NOK/SEK trade last week; especially given stretched long NOK positioning”.

“Otherwise, we are in the middle of the NOK dividend season, which on balance involves NOK selling. However, like with the NOK NGB issuance story, we don’t want to overdo this impact. Our fundamental predisposition remains to re-sell EUR/NOK on spikes towards the high end of the 9.47-9.75 range”.