EUR/NOK to dive below the 10.00 level before end-2021 – ING
Despite the recent correction, the Norwegian krone should still do well. Therefore, NOK is emerging as an attractive buy-the-dip, in the view of economists at ING.
Norway may hike twice this year
“The Norwegian krone has been the worst performing currency in G10 over the last month (-5% vs USD), being penalized by its high beta to risk appetite and lately embedding a risk premium linked to fears of a break-up in the OPEC+ deals that may cause oil prices to fall. As soon as market sentiment stabilises, NOK should emerge as an attractive buy-the-dip opportunity.”
“The krone can still count on the most hawkish central bank in G10, with two hikes in 2H21 (we expect them in September and December) set to attach to NOK the best carry among peers.”
“In line with our commodities team’s view that oil prices will remain broadly supported in 2H21, we think there is still scope for a break below 10.00 in EUR/NOK by year-end.”
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FXStreet Insights Team
FXStreet
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