Economists at Nordea see NOK buying and selling sideways towards each EUR and USD within the short-term. EUR/NOK will doubtless fall considerably additional this 12 months – solely very progressively – however the draw back in USD/NOK may be very restricted.
Threat is to the upside for each EUR/NOK and USD/NOK crosses
“We see EUR/NOK buying and selling within the vary 10.00-10.25 within the short-term, however the threat is to the upside – because it often is over transient intervals.”
“Considerably greater oil prices and better rates in Norway is why we maintain our view for EUR/NOK coming beneath 10.00 by the summer season. However the draw back from there may be doubtless restricted: EUR/NOK traded largely within the vary 9.50-10.00 throughout 2018/19 and we don’t anticipate to see far more draw back than that.”
“We see USD/NOK buying and selling sideways within the short-term, however the threat is to the upside. Norges Financial institution climbing the important thing price later this 12 months and better oil costs forward level within the route of a considerably stronger NOK on a commerce weighted foundation. Nevertheless, we additionally consider the USD will strengthen considerably forward.”
“A continued strengthening of each NOK and USD is why we see a reasonably steady USD/NOK forward. If we had been pressured to lean in any route, the USD might strengthen considerably greater than NOK because of the outperformance of the US financial system. Anyhow, we see very restricted draw back in USD/NOK forward.”