EUR/NOK could fall further towards 9.50 – Nordea

EUR/NOK is trading around 9.85. In the short-term, if markets calm down while energy prices remain high, EUR/NOK could fall to 9.50. Longer out, economists at Nordea see the pair around 10.00.

EUR/NOK to trade around 10.00 this year

“If equity markets calm down while energy prices remain high, the EUR/NOK could fall further towards 9.50 by the summer.”

“Norges Bank will start to sell NOK by the summer to offset the huge increase in taxes from oil&gas companies, that should give more balanced NOK flows and a weaker NOK, all else equal. We therefore see EUR/NOK trading around 10.00 longer out.”

“When it comes to USD/NOK, we see the cross coming above 9.00 toward year-end. The pair has potential on the upside as we continue to believe that higher US rates will drive the USD stronger.”