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UBS Projects Norwegian Krone Gains Against Euro Through Mid-2027
Analysts at UBS are forecasting a sustained appreciation for the Norwegian krone (NOK) against the euro through mid-2027, maintaining a bearish outlook on the EUR/NOK currency pair. The bank's projection comes despite a recent pullback that has erased approximately half of the krone's year-to-date gains against the single currency.
Forecast Details
UBS outlined a specific path for the krone's expected strengthening, recommending that investors consider entering short positions on the currency pair at current levels or selling into rallies. The bank expects the Norwegian krone to continue its outperformance against the euro.
The firm's price targets for EUR/NOK are:
- September: 10.80
- December: 10.70
- March 2027: 10.60
- June 2027: 10.50
AdRationale and Context
The bank's confidence in the krone is rooted in what it describes as a supportive external environment that should favor renewed strength for the currency. In its note, UBS also highlighted the attractive carry as a key factor supporting its outlook.
This forecast stands in contrast to the krone's recent performance. According to UBS, the currency's recent losses against the euro were driven by pressure from falling oil prices and heightened expectations for global interest rate hikes. Despite these headwinds, the bank anticipates that underlying favorable conditions will ultimately drive the Norwegian krone higher over the coming year.