EUR/NOK to trade in a range around 10.00 and USD/NOK slightly above 9.00 this year – Nordea

The Norwegian krone has been supported by higher petroleum prices through the latest market turbulence. Economists at Nordea see EUR/NOK trading in a range around 10.00 and USD/NOK slightly above 9.00 this year, however, with significant volatility.

High oil and gas prices to support the NOK

“As long as oil and gas prices remain elevated, the NOK will continue to benefit from high oil and gas prices and high purchases of NOK from oil companies to cover taxes paid in NOK.”

“Any negative impact on the NOK will be dampened by Norges Bank hiking the key rate to 1.5% this year – making it more expensive to bet against the NOK.”

“We see EUR/NOK trading around 10.00 – however with significant volatility.”

“We see USD/NOK slightly above 9.00 this year. The pair has potential on the upside as we continue to believe that higher US rates will drive the USD stronger.”