EUR/NOK: Encouraging signs to see a fall to 9.90 – Credit Suisse

Economists at Credit Suisse preview this week’s Norges Bank rate decision. They retain a 9.90 EUR/NOK target.

Inflationary risks remain the main driver for a more hawkish Norges Bank

“Risks ahead of the 20 Jan Norges Bank rate decision tilt in a hawkish direction.

“We continue to target EUR/NOK at 9.90, as inflationary risks prevail and fiscal headwinds for EUR/NOK downside have been removed.”

“We would sell rallies towards 10.12 if the Norges Bank fails to sound hawkish, as we ultimately think patience would reward EUR/NOK shorts.”