According to reports from Jinshi Data, ING analyst Pesole stated that the Norwegian central bank may hint at an upcoming rate cut during Thursday's meeting. Although the rate cut may have a negative impact on the Norwegian krone, this effect is expected to be temporary.
Pesole pointed out that increasing risks to economic growth may pave the way for the Norwegian central bank to cut rates in June, which could hinder the recovery of the krone and lead to fluctuations of the euro against the krone in the 11.70-11.80 range.
He believes that, considering the exchange rate advantage of the krone and the euro being overbought, the euro against the krone should continue to decline. ING's target is for the euro to drop to 11.50 against the Norwegian krone by the end of the year.