EUR/NOK to stay above 10.00 into the end of September – ING

The recovery in risk sentiment has fuelled a substantial rebound in the Norwegian krone over the past month. Economists at ING expect the EUR/NOK to remain above the 10 level over the coming month.

A pause for NOK?

“We are currently calling for 25 bps hikes at each of the remaining four meetings of the year by Norges Bank, but the August meeting will be a tight one with risk of 50 bps.” 

“Despite the worsening outlook in Europe, high energy prices are set to keep shielding the Norwegian economy.”

“More risk sentiment instability over the short term may keep EUR/NOK above 10.00 into the end of September, before a more stable downward trend starting from 4Q.”