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Economists at Danske Bank are still positive on NOK due to Norges Bank’s krone buying, a slightly better domestic economic outlook and promising virus numbers. Therefore, they forecast EUR/NOK at 10.20 in 12 months.

Read: EUR/NOK pushes lower as Norges Bank stands alone in the hawkish camp – TDS

Key quotes

“We have moved closer to our positive risk scenario – even if the Fed’s June meeting alongside souring COVID-19 news stirred a temporary setback. We still believe in more EUR/NOK downside due to Norges Bank’s large scale NOK buying to fund the fiscal support of the economy, as we see downside risks to mainland growth have diminished and Norwegian COVID-19 numbers look to be under control.”

“We forecast EUR/NOK at 10.70 in 1M, 10.50 in three months, 10.30 in six months, and 10.20 in 12 months.”