Economists at CIBC Capital Markets analyze EUR/NOK outlook.

A higher rate path

We expect additional 25 bps rate hikes for both June and September, taking the deposit rate to 3.75%. This is also supported by other evidence – including a robust profile for activity, with the uptick in consumer sentiment and labour market surveys which continue to point to further tightening in conditions. 

A more constructive macro backdrop underlines the view of EUR/NOK looking overbought and ready for a correction into H2.

EUR/NOK – Q3 2023: 11.50 | Q4 2023: 11.35