Norges Bank will sell more NOK, this points towards a weaker krone ahead – Nordea Check trading levels

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Norges Bank announced that they will raise their NOK selling to 3.5bn from 1.5bn NOK per day. This large shift points toward a weaker Norwegian krone ahead, according to economists at Nordea.

“We see EUR/NOK trading above 10.00 in the months to come.”

“Norges Bank will sell 3.5bn NOK/day going forward on behalf of the Government, due to a larger petroleum tax flow. At the same time, equity markets will likely continue to be choppy after the hawkish messages from central bankers, well-illustrated by Fed’s Kashari’s comment that he was ‘happy’ with falling stocks. Both of these factors point towards a weaker NOK, while high energy prices should soften the blow.”

“We see EUR/NOK around 10.30 by year-end.”

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