The pound may fall against Norway’s krone after the Bank of England yesterday signaled that it’s moving closer to asset purchases while Norges Bank said rates should be raised gradually, UBS AG said.
Investors should sell the sterling and buy the krone, targeting a 4.7 percent move to 8.8 kroner per pound, Gareth Berry, a Singapore-based UBS analyst, wrote in a note to clients today. They should leave the wager if the pound gains to 9.4 kroner, he wrote. The pound rose 0.3 percent to 9.2322 kroner as of 7:44 a.m. in London.
“Sterling weakness has further to run against the Norwegian krone,” Berry said.