EUR/NOK and EUR/SEK: Vulnerable to the topside – Danske Bank

According to analysts at Danske Bank, yesterday’s disappointing retail sales release in Norway was unexpected and price actions in bothEUR/SEK and EUR/NOK seem to underline their point that the crosses would be vulnerable to the topside heading into Easter.

Key Quotes

“We had already expressed a wish to re-enter a short position of EUR/NOK  on 16 March at around 9.65, i.e. close to current spot. Meanwhile, we do not want to be brave on this side of Easter and with EUR/SEK in technically uncharted territory with the yearly top broken, we cannot rule out an additional leg higher in EUR/NOK . We remain long NOK/SEK and still look to re-sell EUR/NOK eventually.”