The path seems paved for a move lower in EUR/NOK – Danske Bank

Economists at Danske Bank pencil in 2023 to be a good year for the Norwegian Krone. They forecast EUR/NOK at 10.40 and 10.10 in three and twelve months, respectively.

EUR/NOK at 10.40 in 3M and 10.10 in 12M

“If we are right in our base case that the global recession does not prove too severe or deep and/or energy will prove a top-performing equity sector in the coming years, this leaves a much improved backdrop for NOK in 2023.” 

“We forecast EUR/NOK at 10.40 in 3M and 10.10 in 12M.”

“A severe global recession and a sharp sell-off in risk could send EUR/NOK substantially above our projection. On the other hand, a persistent move higher in oil and natural gas prices combined with an improved growth outlook could send EUR/NOK even lower than what we project.”