- EUR/NOK fades the earlier uptick to 9.98.
- The Norges Bank kept rates on hold, as expected.
- NOK rebounds a tad from yearly lows.
The selling bias in the Norwegian Krone has lifted EUR/NOK to fresh yearly highs earlier in the session to the 9.9800 neighbourhood, where it seems to have met some decent resistance.
EUR/NOK higher post-Norges Bank
NOK eased some ground during early trade after the Norges Bank left unchanged the policy rate at 1.50% at Thursday’s meeting, broadly in line with market expectations.
There was no news from the statement from the Scandinavian central bank, which is expected to keep rates on hold for the foreseeable future (2020?). The statement showed the Committee mainly keeps the views from the December report.
In fact, the Nordic bank sees uncertainties overseas to have ebbed somewhat in past weeks, inflation keeps running near the bank’s goal and capacity utilization remains above the normal level. However, the idea that the economy is nearing a cycle peak looks to be generating some noise among board members.
EUR/NOK significant levels
As of writing the cross is losing 0.02% at 9.9590 and a breach of 9.8947 (2020 low Jan.7) would expose 9.8817 (21-day SMA) and finally 9.8154 (2020 low Jan.7). On the upside, the next resistance lines up at 9.9795 (2020 high Jan.23) followed by 10.0174 (100-day SMA) and then 10.2134 (monthly high Dec.4 2019).
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