**BREAKING: Norwegian Krone Trading Range-Bound Against Euro on Softer Inflation Outlook**
The Norwegian krone is expected to remain range-bound against the euro as weaker-than-expected inflation data dampens prospects for additional Norges Bank rate hikes, according to Rabobank strategist Jane Foley. Despite the central bank raising rates by 25 basis points to 4.25% in May, softer inflation readings have significantly reduced market expectations for further monetary tightening in Norway.
The subdued inflation trajectory marks a shift in the NOK outlook, with traders now pricing in a more dovish path ahead for Norges Bank policy. This development comes as European markets continue navigating divergent central bank policies across the region, creating volatility in cross-currency pairs.
Currency traders and forex brokers should anticipate continued range-trading conditions in EUR/NOK rather than a sustained krone breakout, as the inflation cooldown limits the central bank’s ability to extend its tightening cycle beyond current levels.
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FXnCO Insight
** EUR/NOK pairs are likely to trade sideways in the near term, making breakout strategies less favorable than range-trading approaches until fresh Norwegian inflation data provides directional clarity.
Source: FXStreet