The USD to NOK exchange rate exhibits a range-bound bias.
Key drivers include a diminished interest rate differential, as the Federal Reserve is expected to implement rate cuts while Norges Bank maintains its rate at 4.0%. Additionally, global economic growth is improving, but falling oil prices are pressuring the krone, complicating Norges Bank's decisions.
The expected trading range over the next few months is likely to remain stable, with slight fluctuations around the current price. Recent volatility in oil prices, trading between 59.04 to 66.12, adds uncertainty for the NOK’s performance.
An upside risk could emerge if global growth surpasses expectations, potentially boosting demand for the krone. Conversely, if oil prices continue to decline or inflation remains stubbornly high, the krone could weaken further against the USD.
