- The Norwegian Krone flirts with daily lows post-NB meeting.
- The Norges Bank left its key rate unchanged at 0.5% today.
- The Nordic central bank is seen raising rates in September.
The Norwegian Krone is losing some ground in the second half of the week, lifting EUR/NOK beyond 9.60, or daily highs.
EUR/NOK unfazed by steady NB
NOK remained apathetic after the Scandinavian central bank left intact its key rate at 0.50% at today’s meeting, broadly in line with market expectations.
The NB’s Executive Board noted the continuation of the economic upturn in line with the June’s report, while capacity utilization remains close to a normal level. The central bank also added that despite underlying inflation is below the bank’s target, rising capacity utilization should morph into higher prices and wage inflation.
“The Executive Board’s assessment of the outlook and balance of risks suggested that the key policy rate would most likely be raised in September 2018″, reiterated the central bank.
EUR/NOK significant levels
As of writing the cross is up 0.13% at 9.6034 and a breakout of 9.6163 (200-day SMA) would aim for 9.6191 (high Aug.15) and finally 9.6236 (high Jul.20). On the downside, the next support emerges at 9.5557 (10-day SMA) followed by 9.5047 (low Aug.13) and then 9.4924 (low Aug.7).
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