EUR/NOK: It may take a while until the pair trades lower again – Commerzbank

Economists at Commerzbank have adjusted their EUR/NOK forecasts.

Norges Bank keeps all doors open

“Norges Bank raised the key interest rate in May and signaled a further increase in June, but left all doors open for the time thereafter.”

“If the Krone remains weak, Norges Bank will raise the policy rate even further. However, as long as the ECB is perceived as the more restrictive central bank, the NOK should have little upside potential.” 

Source: Commerzbank Research

See: A more hawkish Norges Bank could allow for EUR/NOK to push back towards the 11.40 level – Rabobank