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Krone news
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Banks forecast Norwegian krone to strengthen vs euro by 2027. Norges Bank's policy tone and oil prices will decide near-term moves.
Background
The Norwegian krone has been in focus as major banks release conflicting forecasts. ING is bullish, expecting EUR/NOK to decline to 11.30, while Nordea sees range-bound trading near term but a stronger NOK by 2027. Commerzbank warns of downside risks if Norges Bank turns dovish or oil prices fall. The krone's performance is tied to oil prices, Norges Bank policy, and global risk sentiment.
How it unfolded
- Jul 2026EUR/NOK declined, driven by higher oil prices and Norges Bank's increased NOK purchases.
- Aug 11, 2026Nomura notes that the krone's near-term direction will be driven by Norges Bank's forward guidance, not the widely priced-in policy hold.
- Aug 12, 2026Norges Bank Investment Management reports record high krone return in H1 2026, with the fund's value reaching 22,683 billion kroner.
- Aug 14, 2026ING, Nordea, Commerzbank, and Societe Generale release their latest NOK forecasts, with mixed views on near-term direction but consensus on eventual strength.
Who’s saying what
- Bulls
- ING remains bullish on NOK, forecasting EUR/NOK to decline to 11.30, supported by Norway's strong fiscal position and eurozone weakness.
- Bears
- Commerzbank warns of downside risks if Norges Bank drops its rate hike signal or oil prices fall, potentially pushing EUR/NOK above 11 by year-end.
- Caution
- Societe Generale notes that a dovish turn by Norges Bank could reduce the krone's attractiveness, despite the bank still anticipating one more rate increase.