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Norwegian krone seen stable short term, stronger versus euro in 2027

Nordea links the near term outlook to higher oil prices and Norges Bank increased NOK purchases, while citing two sided risks from Middle East oil developments.

Reported · Written up by our desk · Major Pairs

Nordea strategists expect the Norwegian krone to be broadly stable over the next six months following July’s decline in EUR/NOK, attributing the view to higher oil prices and Norges Bank increasing its NOK purchases. The team also flags two sided risks tied to Middle East developments and oil, which could affect the currency’s near term trading range.

They forecast that NOK could look somewhat stronger against the euro in 2027, supported by a weaker US dollar and improving global risk sentiment that they expect to gradually push EUR/NOK lower.

FXStreet adds that the US dollar has been under pressure after softer US data, contributing to moves in major currency pairs as markets recalibrate expectations for a September rate hike.

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