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On Tuesday Deutsche Bank highlighted their......>

NOK
NOK: On Tuesday Deutsche Bank highlighted their trade of the week as a short
USDNOK position, with an entry at 8.0614 and a target of 7.7500. Spot last
trades at ~8.1310.
- Deutsche believe that NOK can continue to outperform G10 FX. "First, we see a
first Norges hike in September; this is not yet fully priced. Second, if Brent
broke the $75 level (it now has), the Norwegian oil industry's average
breakeven, there should be a non-linear impact on NOK. Third, compared to its
G10 peers, NOK data surprises still have ample room to bounce back from -81.
Risks for this week's CPI are tilted to the upside. Lastly, the krona remains
cheap on both short- and long-term valuation models. Against rates and commodity
prices, financial fair value in USDNOK is 7.75."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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