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Deutsche Bank

FX Blueprint 2026: The Great Rotation

LIVE12 December 2025USD bearish
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USD/NOK

Highest beta to European fiscal expansion

Strongly Bullish

DB Forecast Path

Cross-Firm Forecast Comparison

Key Drivers

European fiscal leverage
Yield advantage
Oil prices
GPFG flows
Valuations

All Firm Targets (Dec '26)

GSBullish9.50
JPMBullish9.42
MSBullish9.40
MUFGBullish9.40
BARCBullish9.40
BofABullish9.35
DBStrongly Bullish9.15
INGVery Bullish9.10

Key Issues for 2026

1.Highest G10 yield outside antipodeans
2.Norwegian sovereign wealth fund provides backdrop
3.European fiscal expansion direct benefit
4.Oil prices supportive
5.Valuations extreme - most undervalued Scandi

Analysis Summary

NOK is our top Scandi pick and highest beta expression of the European recovery theme. Yield advantage, cheap valuations, and fiscal strength create a triple tailwind. EUR/NOK targeting 9.15 represents ~10% appreciation.