EUR/NOK: Levels in the area of 10 are quite possible – Commerzbank

The Norwegian krone has enjoyed a recovery since the end of last week. Economists at Commerzbank expect the EUR/NOK pair to extend its decline towards the 10 zone.

ECB’s rate hikes are now priced in

“I am still of the view that levels in the area of 10 in EUR/NOK are quite possible in the foreseeable future, above all if Norges Bank was to signal faster rate hikes at its next meeting on 23 June.”

“The ECB’s rate hikes are now priced in. That is why I stick to my EUR/NOK projections which imply a slightly stronger NOK against the euro.”