Norges Bank announced that they will sell 2bn NOK each day on behalf of the government in April 2022. EUR/NOK is unsurprisingly up after this announcement. In the view of economists at Nordea, the window for a stronger Norwegian krone has closed.

EUR/NOK unlikely to see more downside than 9.50

“Norges Bank announced that they will sell 2bn NOK each day on behalf of the government in April 2022. After today’s announcement, we believe that the window for a stronger NOK has closed.”

“EUR/NOK will unlikely see more downside than 9.50 even if oil prices come up and risk sentiment is good.” 

“The first impression is that EUR/NOK around 9.75 in 3M and 10.00 by year-end 2022 seems reasonable.”

“Upside risks to our EUR/NOK call are lower oil and gas prices, while downside risks for EUR/NOK are even higher energy prices during the winter.”