EUR/NOK to tick down towards 10.10, Norges Bank to turn more hawkish in June – Credit Suisse

EUR/NOK broke year-to-date highs at 10.38 last week. Economists at Credit Suisse look to sell EUR/NOK rallies to 10.40 targeting 10.10 as they see risks of a hawkish tilt from the Norges Bank in June.

Braced for volatility

“We now expect EUR/NOK to trade in a 9.90-10.60 range, as the external backdrop suggest that high volatility can persist.” 

“Domestically, recent data more conclusively points to rising risks of a hawkish pivot by Norges Bank on 23 June. For this reason, we are tactically bullish on NOK and we would sell EUR/NOK rallies to 10.40 targeting 10.10.”