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11 May 2015
EUR/NOK downside appears limited – Rabobank
FXStreet (Edinburgh) - In the view of Senior Currency Strategist Jane Foley at Rabobank, further pullbacks in the cross could be limited by the Norges Bank’s stance.
Key Quotes
“The Norwegian economy has been hard hit by the plunge in oil prices”.
“Although the unemployment rate is low by international standards, the Norges Bank has warned that this will pick up in response to the lay-offs in the petroleum industry”.
“With petroleum investment forecast to contract by 15% in 2015 and another 10% in 2016, economic growth is forecast to slow to 1.5% in 2015”.
“Although heightened levels of household debt could constrain further easing and the firmer tone of oil should buy some time, risk of a June rate cut is likely to limit downside in EUR/NOK”.
Key Quotes
“The Norwegian economy has been hard hit by the plunge in oil prices”.
“Although the unemployment rate is low by international standards, the Norges Bank has warned that this will pick up in response to the lay-offs in the petroleum industry”.
“With petroleum investment forecast to contract by 15% in 2015 and another 10% in 2016, economic growth is forecast to slow to 1.5% in 2015”.
“Although heightened levels of household debt could constrain further easing and the firmer tone of oil should buy some time, risk of a June rate cut is likely to limit downside in EUR/NOK”.