ING: Norwegian Krone Falls on Weaker Inflation, But Outlook Remains Positive
2026-07-15 09:07:10
The Norwegian krone declined after data showed Norway's year-on-year inflation rate slowed to 2.7% in June. According to Jin10, ING's Chris Turner said in a note that demand for the krone should remain strong at lower levels. He noted that the U.S. inflation data released on Tuesday came in below expectations, weakening the market's expectations for a Federal Reserve rate hike and improving risk sentiment, which would benefit the krone. Additionally, rising energy prices provided support for the currency, and lower volatility could also be favorable for carry trades, where investors borrow low-yielding currencies to invest in high-yielding ones. Turner set a one-month target for the EUR/NOK pair at 11.05, but said the exchange rate could easily fall further to 10.95.
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