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In view of Jane Foley, head of FX strategy at Rabobank, the Norges Bank was the most hawkish G10 central bank in 2019, but despite this the NOK remained the weakest performing G10 currency through most of the year.

Key Quotes

“Towards the end of 2019, the NOK adopted a firmer footing encouraged by a better tone in the oil price and by the ongoing risk that another rate hike could be delivered in 2020. That said, signs of slowing economic growth suggest that rates are likely on hold at least through the first part of the year and this should cap upside potential in the NOK.”

“Assuming risk appetite starts the year on a positive footing we see scope for limited downside potential in EUR/NOK towards 9.80 on a 3 mth view.”