FXStreet (Edinburgh) - Kristoffer Lomholt, Analyst at Danske Bank, sees the Norwegian krone gathering traction during the first half of the year. Key Quotes “In our view, the NOK development continues to be heavily tied to how the economy is doing and thereby the oil price. A key part of the Norwegian transition phase is a weaker currency: when the oil price falls the NOK should weaken in the short term to counter the negative growth effect”. “According to our models – and seen in relation to the coinciding move in relative rates and oil prices – the recent move lower in EUR/NOK seems overdone. With the oil price collapse in mind, we do not think that we are about to see the start of a NOK appreciation trend materialising. Indeed, this would require the business cycle to turn and there are currently no indications of this”. For more information, read our latest forex news.