Despite a very firm message from Norges Bank last week, the NOK hasn’t really rallied due to relatively low global risk appetite, but Norges Bank now forecast a quite significant NOK appreciation, notes the research team at Nordea Markets. Key Quotes “Previously they have forecasted only a minor NOK appreciation, thus making the case for hikes weak if the NOK strengthens. However, with the new I-44 forecast, the NOK can go bananas without a strong NOK being an argument for postponing the hike.” “If the global environment allows it, Norges Bank could accept EUR/NOK in 9.15-9.20 in Q4 without any bearing on monetary policy, that is, an unchanged NOK from here is actually an upside risk for last week’s rate path.” “Since February EUR/NOK has traded very closely connected to periods of risk on and risk off, as indicated by the high correlation with S&P 500. A cease-fire in the trade war is hence likely needed to pave the way for lower EUR/NOK. We also need to consider the usual seasonal weakness in NOK in June/July (due to a turning excess liquidity picture in NOK) – and hence we don’t think that the time has yet come to put on a long NOK as a consequence of the new I-44 forecast by Norges Bank.” 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 Chicago Fed: National Activity Index suggests slower economic growth in May FX Street 5 years Despite a very firm message from Norges Bank last week, the NOK hasn't really rallied due to relatively low global risk appetite, but Norges Bank now forecast a quite significant NOK appreciation, notes the research team at Nordea Markets. Key Quotes "Previously they have forecasted only a minor NOK appreciation, thus making the case for hikes weak if the NOK strengthens. However, with the new I-44 forecast, the NOK can go bananas without a strong NOK being an argument for postponing the hike." "If the global environment allows it, Norges Bank could accept EUR/NOK in 9.15-9.20 in Q4 without any… 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.