Economists at CIBC Capital Markets expect to see a rally in the Norwegian Krone.
While the uptick in price pressures remains a cause for concern, we’d also note a positive fundamental bias that validates underlying NOK resilience.
Resilient domestic fundamentals sit alongside positive terms of trade dynamics.
Positive NOK dynamics leave us mindful of EUR/NOK retreating back toward levels last seen in late February, at around 10.85/90 over time.