- EUR/NOK bounces off post Norges Bank lows near 10.12.
- The Bank of Norway raised the official interest rate by 50 basis points to 2.25%.
- The new rate hikes will depend on the evolution of inflation.
norwegian krone cut part of the initial earnings and now help the EUR/NOK to resume the upward path to the area above 10.2000 on Thursday.
EUR/NOK rises despite oil gains, rather soft NB weighs on Norwegian Krone
EUR/NOK manages to outrun Wednesday’s daily decline and regains traction to the upside as investors continue to adjust to the somewhat dovish tilt from Norges Bank.
In fact, the Scandinavian central bank raised the official interest rate by half a point, to 2.25%, in its meeting on Thursday, although it linked the prospects of additional rate hikes to the evolution of inflation.
Indeed, Norges Bank reiterated that inflation remains well above the bank’s target, although some signs of cooling in the economy could translate into some slowdown in inflationary pressures. The bank sees rates around 3% during the winter.
Technical levels
At time of writing, the cross is up 0.48% at 10.2228 with next resistance emerging at 10.3198 (Monthly High 20 Sep 2022), followed by 10.5393 (High 16 Jun 2022) and then 10.6323 ( monthly maximum of August 20, 2021). To the downside, a drop below 10.1260 (weekly low Sep 22) would open the door to 9.9884 (200-Day SMA) and finally 9.8313 (monthly low Sep 6).
Source: Fx Street
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