ING: Norwegian krone declines due to lower-than-expected inflation data, but outlook remains optimistic

```htmlGolden Ten Data reported on July 15 that after Norway's year-on-year inflation rate slowed to 2.7% in June, the Norwegian krone fell. However, Chris Turner of ING stated in a report that at lower price levels, demand for the Norwegian krone should remain strong. He noted that the US inflation data released on Tuesday was below expectations, which reduced market expectations for a Federal Reserve rate hike and improved risk sentiment, benefiting the Norwegian krone. In addition, rising energy prices also support the currency; lower volatility is also favorable for carry trades, whereby investors borrow low-yield currencies to invest in high-yield currencies. Turner said: “We set a one-month target of 11.05 for the EUR/NOK exchange rate, but the rate could easily fall further to 10.95.”```