EUR/NOK: Trading around 11.25 over the next three to six months – Handelsbanken

The risks to the Norgewian economy are also quite visible in the currency market, with the Norwegian krone down by about 11 percent since February, per Handelsbanken. 

Key quotes

“Despite direct intervention from Norges Bank, an approach not taken since the 1990s, having reversed some of the collapse, the NOK is still hovering around historically weak levels.”

“Against a backdrop of a weak economy subject to downside risks, coupled with low oil prices, the scope for a full recovery of the NOK is also limited.” 

“We expect the EUR/NOK to trade around 11.25 over the next three to six months.”