Higher oil prices likely to weigh on long term EUR/NOK

The NOK is at historically weak levels, and long term there should be downside potential for EUR/NOK, which is seen coming with higher oil prices in a year or two. 

Short term, however, the weakness is needed as part of the stimulus Norges Bank sees as appropriate for the economy. There is downside seen for Norges Bank's picture of employment and inflation and a higher probability of a rate cut. 

"Also, a weaker NOK is seen than what Norges Bank see, but more in terms of high USD/NOK, GBP/NOK and SEK/NOK than EUR/NOK", says Nordea Bank.