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Analysts at ING explain that the NOK has moved closely with global equity markets over the past week, and this is likely to remain the case over coming days as well.

Key Quotes

“With Brent oil falling into the mid-70s, the krone has lost a key supportive factor. This, combined with a continued gradualist stance from Norges Bank, means we see another move towards the key support level at 9.40 as unlikely in the near term.”

“The key data to watch over the coming week is the PMI survey on Thursday, which we expect will show the Norwegian economy is holding up somewhat better than peers in Sweden and the Eurozone (where near-term indicators have turned down over recent months).”

“The relative resilience of the domestic economy means we remain constructive on NOK compared to other high-beta currencies such as SEK, AUD, NZD.”