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Norwegian krone seen as strongest G10, EUR/NOK targets lowered

Rabobank cut its 3-month EUR/NOK target to 10.80 from 10.90 and expects a 12-month level near 10.50, citing oil support, above-target inflation, and a hawkish Norges Bank.

Reported · Written up by our desk · Major Pairs

Rabobank strategist Jane Foley said the Norwegian krone is expected to keep gaining versus the euro, calling NOK the strongest G10 currency across multiple horizons.

In its view, NOK is supported by Norway’s status as Europe’s largest energy exporter, plus resilient domestic demand, while oil prices and above-target inflation add to the case. Foley also pointed to a hawkish Norges Bank and the prospect of further rate hikes as additional support.

Foley forecast EUR/NOK would drift lower, lowering the firm’s 3-month target to 10.80 from 10.90. The 12-month outlook was kept near 10.50, according to the note.

The strategist also linked the stance to uncertainty around geopolitics, noting speculation that an Iran war could drag on, which could reinforce the case for NOK versus EUR.

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