NOK keeps the positive stance – TDS

Strategists at TD Securities remain constructive on the Norwegian Krone for the time being.

Key Quotes

“Both Norges Bank and Riksbank forecasts show rate hikes in the coming months, but we think they'll take a little longer to get there (Dec-18 for both). We think the Norges Bank is likely to be surprised (again) by weak inflation over the next few months, while the Riksbank remains beholden to ECB policy, where we see a slower removal of stimulus than consensus”.

“The market is long NOK, but we see a bit more upside potential – vs. both SEK and EUR. The Norges Bank has pivoted to a more hawkish bias while oil prices and the domestic backdrop also provide support. SEK is starting to look cheap but weak inflation, slowing growth, and housing risks continue to weigh”.