- The Norwegian Krone depreciates to the 9.60 area post-Norges Bank.
- The cross climbed to fresh 3-day highs on NB’s dovish-hike.
- The Norges Bank raised rates by 25 bp to 0.75%, matching estimates.
The Norwegian Krone is now accelerating the downside and lifts EUR/NOK to fresh peaks in the boundaries of the 9.60 handle.
EUR/NOK higher on Norges Bank
The cross has quickly climbed to fresh 3-day tops in the 9.60 area despite the Norges Bank raised its key rate by 25 bp to 0.75%, in line with previous estimates.
The Norges Bank noted the upturn in the domestic economy remains well and sound, while capacity utilization is approaching normal levels and underlying inflation is near the bank’s 2% goal.
The Scandinavian central bank, however, remains cautious over the uncertainty gyrating around higher interest rates.
In this regard the Norges Bank kept the outlook on interest rate little changed from the June’s report, pointing to gradual rate hikes, inflation navigating close to the bank’s target in the next years and unemployment in low levels.
EUR/NOK significant levels
As of writing the cross is up 0.77% at 9.5886 and a breakout of 9.6093 (200-day SMA) would aim for 9.6442 (high Sep.14) and finally 9.6751 (21-day SMA). On the downside, the next support emerges at 9.4980 (low Sep.20) followed by 9.4924 (low Aug.7) and then 9.4588 (monthly low May 24).
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