The cross is seen keeping the rangebound trading within 9.47-9.75 for the time being, according to Analyst at Danske Bank Aila Mihr.

Key Quotes

“In terms of the NOK, we see EUR/NOK as a 9.47-9.75 range play. The spike in oil prices following the weekend attack in Syria is in isolation positive for the NOK, but we emphasize that geopolitically-driven volatility in oil prices tends to have a smaller short-term impact on the NOK than when oil prices are driven by global demand shocks”.

“Also, we think much of the move lower in EUR/NOK last week on higher oil prices was related to markets pricing in a high probability of military response in Syria from the allies. With EUR/NOK in the lower end of the range and with the EUR/SEK rally likely to take a breather following today’s release, we are contemplating taking profit on our long NOK/SEK trade recommendation”.

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