EUR/NOK: Little upside for the Krone in the short turn – Nordea

Economists at Nordea see a weak NOK until the summer.

NOK will remain weak for now

“We expect the NOK to remain weak until the summer – with our view for EUR/NOK around 11.10 in 3M and 10.00 by mid-2023.”

“We expect a somewhat lower EUR/NOK toward year-end, but the pair will likely remain high in a historical context.” 

“Norges Bank reducing their NOK sales after the summer should help the NOK. Other bright spots for the NOK should be higher petroleum investments, the reopening of China which means higher oil prices, and central banks pausing their rate hikes.”

“We see EUR/NOK around 10.60 at end-2023”