NOK’s relentless underperformance points to tomorrow’s Norges Bank rate decision as a make-or-break moment for the currency. Economists at Credit Suisse expect the EUR/NOK pair to test 11.70 if the Norges Bank fails to deliver a 25 basis points rate hike.

EUR/NOK can fall as far as ~10.81 on a 50 bps hike

“With markets primed for hawkish risks around a 25 bps hike scenario, failure to deliver can push EUR/NOK to quickly test 11.70.”

“Conversely, EUR/NOK can fall as far as ~10.81 on a 50 bps hike.”

See – Norges Bank Preview: Forecasts from five major banks, 25 bps hike, but there could be a hawkish surprise