Economists at Nordea expect the EUR/NOK pair to remain rabebound in the near term and start to edge lower in the second half of the year.

Lower EUR/NOK toward year-end

“It is likely EUR/NOK will remain rangebound in the short term in the interval 10.50-11.00. However, we expect to see a lower EUR/NOK toward year-end.”

“Bright spots for the NOK should be higher petroleum investments (implies increased NOK buying from oil companies), the reopening of China which means higher oil prices, and central banks pausing their rate hikes.”

“We see EUR/NOK at 10.20 by mid-2023 and around 10.00 at end-2023.”