The krone has reversed around three-quarters of the sharp losses sustained in the first quarter of Q1 2020 when the negative COVID-19 shock first hit as the EUR/NOK pair has fallen back since the middle of last year towards support at the 10.500-level. Analysts at MUFG Bank expects the NOK to continue recovering losses in 2021 but at a more gradual pace. Key quotes “The krone has benefitted from the ongoing improvement in global investor risk sentiment and rebound in the price of crude oil. Similarly, the price of oil has also reversed around three-quarters of the sharp losses sustained in Q1 2020.” “Our oil analyst maintains a bullish outlook for the price of oil which he expects to rebound further towards USD60/barrel in the year ahead. Favourable oil price developments support our outlook for a stronger krone.” “We still see scope for the undervalued krone to rebound further in the year ahead although more modestly than over the past nine months.” “Domestic fundamentals in Norway remain attractive for krone strength. Norway’s economy has been hit less hard by the COVID-19 shock. Mainland GDP in Q3 was just over 3% below the peak from the end of 2019. Growth of around 4.0% is now expected in 2021.” “The Norges Bank is currently planning to raise rates well before other major central banks during the 1H 2022.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CHF jumps to near two-week tops, eyeing a move beyond 0.8900 mark FX Street 2 years The krone has reversed around three-quarters of the sharp losses sustained in the first quarter of Q1 2020 when the negative COVID-19 shock first hit as the EUR/NOK pair has fallen back since the middle of last year towards support at the 10.500-level. Analysts at MUFG Bank expects the NOK to continue recovering losses in 2021 but at a more gradual pace. Key quotes “The krone has benefitted from the ongoing improvement in global investor risk sentiment and rebound in the price of crude oil. Similarly, the price of oil has also reversed around three-quarters of the sharp losses sustained… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.