EUR/NOK: Losing the 11.00 level in six months – Danske Bank

Economists at Danske Bank expect the Norwegian krone to strengthen markedly over the coming year.

Key quotes

“We expect a contraction this year of 2.5%, but a rebound of 3.3% next year.” 

“Norges Bank has reached the bottom in the policy rate and we expect liquidity/credit measures to support the fiscal muscle in cushioning the economy from here.”

“We tentatively forecast the EUR/NOK cross at 11.10 in 3M, 11.00 in 6M and 10.50 in 12M.”