EUR/NOK to breach the 12.00 figure in the coming 6M – Danske Bank

This autumn, the Norwegian currency has gained recent support. However, economists at Danske Bank expect NOK to weaken again. 

Relief boost to NOK to prove temporary

We maintain a negative view on NOK. 

For the very near-term, we cannot rule out more NOK strength but we highlight that we see such strength as temporary and still pencil EUR/NOK to breach the 12.00 figure in the coming 6M. 

We still think NOK is fundamentally undervalued but we do not see the trigger for a turnaround in the next 12M as global headwinds look set to return.

Forecast: 11.70 (1M), 11.90 (3M), 12.10 (6M), 12.10 (12M)