The Norwegian krone has recorded significant losses since early May. Nonetheless, economists at Commerzbank expect the EUR/NOK to reverse back lower towards the 10.00 level.

Do not give up NOK bulls!

“I consider the NOK losses to be overdone. First of all, Norway will remain an important energy provider for Europe, benefiting from steady strong export revenues. But in particular, since the April inflation data surprised clearly on the upside suggesting that in June Norges Bank will not only hike its key rate again but might also raise its rate path to signal a tighter cycle.”

“I remain optimistic that in the foreseeable future we will once again see levels around 10.00 and lower in EUR/NOK and would tend to buy NOK on dips.”