EUR/NOK seen trading around 11.50 until year-end – Nordea

The Norwegian Krone has had a good summer. Economists at Nordea analyze NOK outlook.

No summertime sadness

The NOK is one of the main benefiters of inflation abroad coming in lower and global central banks signalling the end of rate hikes. 

We remain sceptical about more NOK strengthening in the short to medium term. Norges Bank probably won’t raise their rate path even if inflation in June came in somewhat higher than expected. Norges Bank hiking less than the market anticipates points toward a somewhat weaker NOK. 

We see EUR/NOK trading around 11.50 ahead.