The Norwegian krone strengthened last week in tandem with the pullback of the USD and risk-on in financial markets. Still, economists at Nordea see EUR/NOK trading as high as 10.75 until year-end.

More pain to come

“Historically speaking, the period towards year-end, remains a difficult period for the NOK seasonality-wise. We don’t think this year will be an expectation given the macroeconomic backdrop and see EUR/NOK trading as high as 10.75.” 

“USD/NOK could rise to 11.50 if/when EUR/USD takes a turn to 0.95 again.”