A extra hawkish Norges Financial institution did give help to NOK final week, however that help was short-lived as each oil costs and inventory markets fell. Economists at Nordea see the cross transferring within the vary 10.00-10.30 within the near-term, however see extra draw back by the summer time.
“The broader danger sentiment in markets is at present tightly linked to actions in US long-term charges. If inventory markets get spooked from greater US charges then NOK will find yourself being collateral injury – as we have now seen up to now two months. However finally US long-term charges will attain some form of regular state – lowering the scope for a lot greater price actions – and this could cut back the downwards strain on shares we have now seen currently.”
“Longer out, the worldwide restoration will probably proceed to offer help to shares, and the identical holds for the oil worth as effectively. Larger shares, oil costs and rates in Norway is why we maintain our view for EUR/NOK coming under 10.00 by the summer time. However within the near-term, although, EUR/NOK is more likely to transfer about sideways within the vary 10.00-10.30.”