Norwegian Krone: Further gains seen versus Euro - Rabobank
Rabobank's Senior FX Strategist Jane Foley highlights that the Norwegian Krone (NOK) is the strongest G10 currency across multiple horizons, supported by Oil prices, above-target inflation and a hawkish Norges Bank.
Rabobank’s Senior FX Strategist Jane Foley asserts that the Norwegian Krone (NOK) stands out as the strongest G10 currency, driven by oil prices, inflation above targets, and a cautious stance from Norges Bank. Norway’s status as Europe’s top energy exporter and robust domestic demand bolster the NOK’s position. Foley predicts EUR/NOK will decline, revising her 3-month forecast to 10.80 and a 12-month outlook near 10.50.
The market currently shows limited risk of a rate increase next month, but this could be affected by the release of August CPI inflation data on September 10th. In light of ongoing concerns about Iran’s war and potential future rate hikes, Rabobank continues to support NOK against the EUR, lowering their 3-month target to 10.80 from 10.90.
NOK has been the top-performing G10 currency over various time frames, yet EUR/NOK remains above its spring lows. Analysts see further policy announcements and Norway’s dominant role in Europe’s energy sector as positive influences on the currency.
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