We think the Norwegian krone’s rally is nearing its end

Although the krone has rallied this year on the back of high energy prices and the expectation of tighter monetary policy, we do not expect this to continue. We think slowing global growth and normalising energy prices will work against the krone over the next 12-18 months. Our view is that these headwinds will be balanced by more hawkish monetary policy, resulting in a broadly stable outlook for the krone. In view of the wider interest, we are also sending this FX Markets Update to clients of our Nordic & Swiss service