Norwegian krone weakened after Norway's June YoY inflation eased to 2.7%. ING's Chris Turner says demand for NOK should remain strong at lower levels. He notes Tuesday's US inflation print came in below expectations, reducing Fed tightening bets and lifting risk sentiment, which supports NOK; rising energy prices add further support and lower volatility may favor carry trades. ING sets a one-month EUR/NOK target of 11.05 but sees scope for a drop toward 10.95.

Fed Governor Bowman said the Fed should not micro-manage banks on issues such as artificial intelligence.

ECB staff say geopolitical uncertainty reduced loan demand from euro-area exporters to the US and tightened credit conditions. Economists led by Petra Köhler-Ulbrich say European automakers — among the firms most exposed to tariffs — faced tighter lending standards, compounding existing structural problems. Some banks left formal lending terms unchanged but stepped up monitoring of affected firms. The staff estimate the impact on credit peaked April–October 2025 and eased later that year after a summer preliminary US–EU trade framework improved sentiment and reduced policy uncertainty. The note did not reference recent US–Iran tensions but warned such shocks could complicate recovery. Policymakers are weighing that downside risk against inflation ahead of next week’s rate decision.