NOK: Norges Bank effect fully in the price - ING

Analysts at ING expect EUR/NOK to take a pause for a breath following the last week’s NB induced drop in the cross prompted by the gentle upward revision in the NB’s own interest rate forecast.

Key Quotes

“July unemployment rate or Aug retail sales are not enough for markets to further re-price the NB outlook. Even Governor Olsen stressed that despite the new forecast’s modest implied probability of a hike in late 2018, tightening will most likely start only when ‘well into 2019’.”