Economists at Danske Bank have a near-term negative stance on NOK given a mismatch in fiscal FX transactions and shaky global risk appetite. 

More bullish secular case for energy and by extension NOK over the coming 5 years

“We have a near-term negative stance on NOK given a mismatch in fiscal FX transactions and shaky global risk appetite amid slowing global growth, contractionary monetary and credit signals and bank sector concerns.”

“We still believe in a more positive case for energy and by extension NOK for the coming 5 years but we highlight the risk that our NOK positive view could take longer to play out.”

“We forecast EUR/NOK at 11.70 in 3M and 10.80 in 12M.”