EUR/NOK: The Year 2023 Will Be Better For the Krone
According to the latest news reports, the Norges Bank has decided to slow down its NOK selling. But experts believe that it will only be one of the factors that have the ability to affect the Norwegian Krone. In addition, we also need to look at what's happening in the global financial markets.
It is only by looking at the full picture that we will be able to see exactly what's been happening with the NOK currency.
If we talk about the news of Norges Bank, their selling of NOK has slowed down according to the available data. So based on this factor, we can say that the short-term trend for the NOK will be bullish. However, any disturbance in the financial markets around the world could alter this outlook.
In addition, we also can't ignore what's going on in the EURO area, which can affect the European currency significantly. If the fundamental situation makes the EURO stronger than the NOK, then the pair will turn higher, making the NOK weaker.
That's why some analysts are saying that the current markets are too pessimistic when it comes to economic activity. On the other hand, the markets have become too optimistic about the inflation situation. By looking at both of these factors, it appears that there's still a lot of action left for the NOK.
According to experts, the most probable forecast for the EUR/NOK is expected to be around 10.60. So unless something major happens, this forecast will stay valid!
But in 2023, the situation for the NOK will be far better, and there's a high chance that the EUR/NOK will reach 10.20 somewhere around mid of 2023. And by the end of 2023, the price of EUR/NOK will be close to 9.75.
In short, the Euro is expected to lose some of its strength against the Norwegian Krone. Similarly, the NOK will gain against the EURO and a few other currencies during 2023.