EUR/NOK will continue to move lower in the following days

The pair will continue to move lower in the following days towards its 02 January 2020 price level. Norway is bound to recover earlier and faster than other countries in the European region. This was due to its immediate response after the coronavirus outbreak became pandemic. Norway was among the first countries to shut their border and implement social distancing rules. It is also among the first to restore business operations following its successful combat against COVID-19. Analysts believe that the 11.4% contraction in March and April was the peak of Norway’s economic downturn. Also, a major part of the decline was attributed to the slump of crude oil prices. But now that the oil markets are recovering along with Norway’s economy, a robust recovery is expected. On the other hand, the single currency led by Germany continues to suffer on the weak economic figures and activity in Berlin and Paris.