The EUR has clawed back some of its recent losses vs. the NOK in recent weeks. However, economists at Rabobank expect the EUR/NOK pair to grind lower towards 9.50 the next quarter.
“Due to energy security, the eurozone economy is faced with more risks than the Norwegian. Additionally, wage inflation and over-heating risks are larger for Norway.”
“We expect EUR/NOK to continue to trend lower in 2022. We see scope for a move back to the 9.50 area on a three-month view.”