NOK/USD Outlook:
The NOK/USD exchange rate is slightly positive, but likely to move sideways as it currently sits above its 90-day average and is just below recent highs without a clear driver pushing it higher.
Key drivers:
• Rate gap: The Norges Bank's cautious stance on rate cuts supports the NOK against the USD.
• Risk/commodities: With Brent Crude OIL/USD trading significantly above its recent average, the strong oil prices support the value of the Norwegian Krone.
• One macro factor: The ongoing developments in US GDP growth are creating uncertainty that may impact USD strength.
Range:
Expect the NOK/USD to hold steady within its recent 3-month range, with potential movement either way depending on external factors.
What could change it:
• Upside risk: Any unexpected increase in oil prices could further boost the NOK.
• Downside risk: A disappointing US GDP report could weaken the USD and influence the NOK accordingly.