- NOK appreciates further following a steady Norges Bank.
- The Norges Bank left its repo rate unchanged at 0.75%.
- The cross drops and tests session lows in the vicinity of 9.50.
The Norwegian Krone is picking up extra steam on Thursday and is now dragging EUR/NOK to test fresh lows in the proximity of 9.50.
EUR/NOK sidelined in the top of the range
NOK is trading on a firmer note in the second half of the week after the Norges Bank left unchanged its repo rate at 0.75% at today’s meeting, matching the broad consensus.
The Scandinavian central bank reiterated that the ‘economic upturn was continuing and that capacity utilization was close to a normal level’. Regarding inflation, the Norges Bank appears satisfied with consumer prices hovering over the 2% level for the time being.
The central bank now expects to hike rates in a gradual fashion following the economic outlook and balance of risks, and it sees the next raise at some point in Q1 2019.
EUR/NOK significant levels
As of writing the cross is losing 0.10% at 9.5038 and a breakdown of 9.4775 (21-day SMA) would aim for 9.4714 (10-day SMA) and finally 9.4141 (low Oct.17). On the upside, the next hurdle emerges at 9.5434 (100-day SMA) followed by 9.5745 (200-day SMA) and then 9.6236 (high Jul.20).
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