EUR/NOK: Oil, a stronger USD and industrial cycle prospects limits the downside – Danske Bank

Economists at Danske Bank expect the EUR/NOK pair to continue moving downward towards 10.10 over this quarter but with limited downside potential below that level. 

Key quotes

“Norges Bank’s NOK buying, higher NOK rates and bid oil add tailwinds for the NOK near-term and we see EUR/NOK moving to 10.10 in 3M.”

“We identify NOK headwinds further out from a fading global industrial cycle, stronger USD and US shale oil re-entering the market. Hence, we now see EUR/NOK at 10.30 in 12M.”