The restoration in danger sentiment has fuelled a considerable rebound within the Norwegian krone over the previous month. Economists at ING count on the EUR/NOK to stay above the ten degree over the approaching month.
A pause for NOK?
“We’re presently calling for 25 bps hikes at every of the remaining 4 conferences of the yr by Norges Financial institution, however the August assembly can be a good one with danger of fifty bps.”
“Regardless of the worsening outlook in Europe, excessive vitality costs are set to maintain shielding the Norwegian economic system.”
“Extra danger sentiment instability over the brief time period could hold EUR/NOK above 10.00 into the top of September, earlier than a extra steady downward pattern ranging from 4Q.”