EUR/NOK to dip below 10.20 as Norges Bank to go ahead with tightening plans – ING

The EUR/NOK pair is set to slide below the 10.20 level as the Norges Bank is expected to proceed with its planned tightening, economists at ING report.

Norges Bank tightening prospect offering support

“Another rise in Norwegian inflation in August (headline reached 3.5%) all but cemented the view that the Norges Bank will go ahead with its planned hikes in September and December – which is also our view.”

“We continue to think that markets are rewarding those currencies that are backed by tightening cycles, and here NOK and NZD are the two key stand-outs in G10.”

“Barring any material corrections in risk assets, we could see a break below 10.2000 in EUR/NOK next week.”