Norges Bank announced that they will raise their NOK selling to 3.5bn from 1.5bn NOK per day. This large shift points toward a weaker Norwegian krone ahead, according to economists at Nordea.

Norges Bank shifts gears, expect a weaker NOK

“We see EUR/NOK trading above 10.00 in the months to come.” 

“Norges Bank will sell 3.5bn NOK/day going forward on behalf of the Government, due to a larger petroleum tax flow. At the same time, equity markets will likely continue to be choppy after the hawkish messages from central bankers, well-illustrated by Fed’s Kashari's comment that he was ‘happy’ with falling stocks. Both of these factors point towards a weaker NOK, while high energy prices should soften the blow.” 

“We see EUR/NOK around 10.30 by year-end.”