EUR/NOK to return towards 11.90 if Norges Bank’s statement sounds more cautious – Commerzbank

Economists at Commerzbank analyze how the Norges Bank Interest Rate Decision could impact the Krone (NOK).

NOK to benefit if  Norges Bank maintains its restrictive wording

If Norges Bank maintains its restrictive wording today this is likely to fuel rate hike expectations for December a little again, thus supporting Krone. It will also matter though what the inflation data for October and November looks like (published on 10th November and 11th December).

If today’s statement sounds more cautious as far as December is concerned, contrary to expectations, that is likely to act like a punch in the face for NOK and might cause EUR/NOK to return towards 11.90 again.