- EUR/NOK meets support near the key 10.0000 mark.
- The Norges Bank left the key rate unchanged at 0.00%.
- The central bank signaled a probable rate hike later in 2021.
The Norwegian krone picks up further pace and drags EUR/NOK closer to the psychological support at 10.00 the figure on Thursday.
EUR/NOK weaker on hawkish Norges Bank
EUR/NOK extends the bearish note for yet another session after the Norges Bank unanimously kept the policy rate unchanged at 0.00% at its meeting earlier on Thursday.
In fact, the Scandinavian central bank matched the broad consensus although it delivered a hawkish message after it hinted at the likelihood of an interest rate hike in the second half of the year on the back of solid fundamentals and signs of earlier-than-expected normalization in the economic activity.
NOK has been also gathering extra pace in tandem with the rally in crude oil prices, with the barrel of Brent crude now navigating a consolidative range around the $68.00 mark following yearly highs beyond the $71.00 mark (March 8).
What to look for around NOK
NOK continues to challenge the key 10.00 barrier, always following Brent dynamics and the hawkish stance from the Norges Bank. That, coupled with a faster economic recovery, the firm vaccine rollout and prospects of a solid rebound in the global activity are seen collaborating with the view of a stronger currency in the medium-term. It is worth recalling that the Norges Bank is predicted to be one of the first central banks to hike rates in the DM space.
EUR/NOK significant levels
As of writing the cross is losing 0.16% at 10.0586 and a breach of 10.0203 (2021 low Mar.18) would expose 10.0042 (monthly low Feb.17 2020) and finally 9.8163 (2020 low Jan.2). On the upside, the next up barrier emerges at 10.1410 (weekly high Mar.15) followed by 10.2568 (55-day SMA) and then 10.4791 (monthly high Feb.26).
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