NOK: outlook remains appealing this year – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen assessed the prospects for the Norwegian Krone ahead in the year.

Key Quotes

“In terms of the NOK, we will pay close attention to this morning’s new wage statistics from SSB: if the 2017 wage drift has been significantly higher than pencilled in by Norges Bank, it would add to the list of arguments for a 2018 rate hike. We will also get the manufacturing PMIs, but we would need a further rise or a substantial drop to trigger any significant NOK move, in our view”.

“Otherwise note that Norges Bank’s weekly flow data confirms that foreign investors have returned to the NOK market in 2018. Meanwhile, given the substantial spot move, we are somewhat surprised that the cumulative NOK purchases in the first weeks of the year have not been larger”.