In the view of economists at Credit Suisse, risk-reward to being outright bearish on NOK has deteriorated: they now target a EUR/NOK range between 10.20 and 10.70.
Lower end of EUR/NOK target range set at 10.20
“Market expectations ahead of tomorrow’s Norges Bank rate decision have shifted in a dovish direction in Dec, at the same time as soft US CPI data have cast a more constructive outlook for risk-sensitive currencies (such as NOK). This leaves us with a much less attractive risk-reward to being outright bearish on NOK.”
“We now see our previous EUR/NOK target of 10.70 as the top of a neutral short-term target range, with a lower bound just below the 1 Dec lows, at 10.20.”
See – Norges Bank Preview: Forecasts from five major banks, last hike in December?
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