Norway's inflation likely to have grown

In Norway, August Industrial Production and inflation data will be the main focus of the week. The underlying inflation (CPI-ATE) is expected to have grown by 2.9% y/y. 

The Bank's updated forecasts imply material further downside in Norwegian growth and a tolerance of a weaker NOK and higher short-term inflation. With this in mind, growth indicators will remain increasingly important. 

"There is scope for further correction lower in EUR/NOK on the basis of NOK undervaluation but continue to think that the near-term EUR/NOK forecasts are skewed to the upside. Momentum-wise, the indicators continue to point to an overbought EUR/NOK position", says Barclays.