Morgan Stanley entered a short EUR/NOK.....>

EURO-NOK: Morgan Stanley entered a short EUR/NOK position at the NY close with a

target of NOK9.3800 and a stop at NOK9.7700.

- MS reason that "Norway remains a bright spot in terms of economic data, which

is keeping the Norges Bank on a hawkish path. Indeed, markets may be

underpricing Norges Bank rate hikes, in our view, with only about a 64%

probability of another hike priced by year end, while we expect the central bank

to deliver another hike in 3Q, as signalled. This contrasts with the ECB, which

continues to strike a dovish tone and from whom additional policy easing is

likely, suggesting rate differentials moving in favour of NOK, which is already

offering the second highest carry/vol ratio within G10. Oil looks poised to

trade in a range as OPEC+ cuts meet falling demand, limiting EURNOK upside.

Fiscal stimulus from the Norwegian government is also supporting the economy and

is a positive for NOK. A key risk to the view is that the Norges Bank turns more

dovish, pushing NOK broadly lower."