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  • EUR/NOK extends the downside to the 11.00 area on Thursday.
  • The Norges Bank reduced rates to 0.00% at its meeting.
  • Recovery in crude oil lends support to the Norwegian krone.

The Norwegian currency is extending the upbeat momentum and drags EUR/NOK to fresh 2-month lows in the vicinity of 11.0000 the figure.

EUR/NOK under pressure on oil gains

EUR/NOK is down for the fourth consecutive session on Thursday, with NOK picking up extra buying interest on the back of the strong recovery in crude oil prices.

In fact, the improved sentiment around prices of the European reference Brent crude is lending oxygen to NOK and therefore collaborating further with the sharp downside in the cross.

The renewed bearish stance in the single currency is also helping the cross to trade in levels last seen in early March around the 11.0000 neighbourhood.

Still around NOK, the Norges bank reduced its key rate to a record low at 0.00%, suggesting that this level is expected to remain until end of 2023. Th Nordic central bank has therefore ruled out negative interest rates, suggesting that current low levels should help in the slow recovery of the economy in the aftermath of the coronavirus outbreak. In this regard, the Norges Bank expects the Scandinavian economy to contract around 5.2% this year.

EUR/NOK significant levels

As of writing the cross is losing 0.49% at 11.0318 and a breach of 10.6415 (100-day SMA) would expose 10.3381 (200-day SMA) and finally 10.2811 (monthly low Mar.3). On the upside, the next hurdle emerges at 11.4692 (monthly high May.4) followed by 11.6965 (monthly high Apr.22) and then 12.1492 (2020 high Mar.19).