Krone’s losses are likely to have been exaggerated and have already been partially corrected, in the opinion of economists at Commerzbank. They expect the EUR/NOK pair to fall below 10 again. 

NOK losses overdone

“Inflation in Norway surprised to the upside again in April, so the Norges Bank may not only raise the key rate again in June but could also raise the interest rate path. Moreover, krone's losses in May seem overdone. EUR/NOK should therefore fall below the 10 mark again. However, NOK upside potential is still limited, as the ECB will also start raising interest rates in July.”

“Next year, NOK could gain a little more ground against the euro. Although the ECB is also likely to raise its key rate again, Norges Bank will remain the comparatively more active central bank. In addition, high energy prices should tend to support the NOK.”