EUR/NOK currently trades around 10.08, having traded in the range 10.03-10.21 last week. In the view of economists at Nordea, the pair could easily fall below 10.00 this week on the back of a more hawkish Norges Bank.
Key quotes
“The key event for NOK this week will be Norges Bank’s March meeting this Thursday. We expect a higher rate path – signalling a first rate hike this year. A more hawkish Norges Bank could easily lead to EUR/NOK coming below 10.00 this week, so long as equities and oil prices hold their ground.”
“If for some reason the mood in equity markets should sour this week, then EUR/NOK will likely jumps higher. We see resistance around the 10.50/10.60 area.”
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