EUR/NOK drops to weekly lows near 10.12 on steady Norges Bank

• EUR/NOK recorded weekly lows near 10.12.
• The Norges Bank kept the key rate unchanged at 1.5%.
• The central bank kept the rate path intact from September.

The Norwegian Krone is prolonging the weekly upside on Thursday, dragging EUR/NOK to fresh weekly lows in the 10.12 area following the steady stance from the Norges Bank.

EUR/NOK recedes further from historic highs

NOK keeps navigating the positive territory vs. the single currency so far this week. The cross has receded further today after the Norges Bank left the policy rate unchanged at 1.50% at its meeting.

The message from the Nordic central bank has practically matched the one at the September meeting, leaving no room for surprises amidst the neutral stance and thus the impact on the FX space was pretty muted.

The central bank has reiterated the solid health of the domestic economy and that underlying inflation is running as projected. On the negative side, the NB still sees persistent uncertainty in the global markets against the backdrop of very low interest rates.

What to look for around NOK

The Norges Bank matched expectations and left the key interest rate on hold at 1.50% at today’s meeting. The Scandinavian central bank kept the rate path unchanged from the September meeting amidst a steady but solid economic outlook. In addition, and in light of persistent uncertainties overseas – mainly stemming from trade concerns – the current level of rates is expected to remain unchanged at least in the near/medium term. On the FX side, the weaker NOK risks sparking some upside pressure in consumer prices in the next months.

EUR/NOK significant levels

As of writing the cross is losing 0.08% at 10.1447 and a breach of 10.1227 (low Oct.24) would expose 10.0589 (21-day SMA) and finally 10.0009 (low Oct.11). On the upside, the next resistance aligns at 10.2439 (all-time high Oct.18) seconded by 11.0000 (psychological level).