EUR/NOK: Brief spikes above 12.00 are a tangible risk – ING

In Norway, CPI figures for the month of October have just been released. Economists at ING analyze EUR/NOK outlook ahead of the 14 December Norges Bank meeting. 

Inflation surprised to the upside

Headline inflation accelerated from 3.3% to 4.0%, more than the market expected. Underlying inflation also increased from 5.7% to 6.0%. In addition to sticky inflation, the recent weakness in NOK has been a rather hawkish signal ahead of the 14 December Norges Bank meeting. 

Brief spikes above 12.00 in EUR/NOK are a tangible risk before the NB meeting, also considering the recent acceleration in NB’s daily FX purchases.