EUR/NOK bounces off 7-week lows around 9.81

EUR/NOK dropped and tested sub-9.81 levels in early trade.
Norges Bank raised rates by 25 bps, in line with expectations.
The central bank is expected to remain on hold for the next periods.

Pablo Piovano FXStreet

The Norwegian Krone faded the initial spike vs. the single currency and is now lifting EUR/NOK to the 9.90 region.

EUR/NOK offered despite rate hike

NOK has initially spiked to fresh multi-week highs vs. EUR in the area below 9.81 after the Norwegian central bank (Norges Bank) raised the key rate by 25 bops to 1.5%, broadly in line with market expectations.

However, the Scandinavian central bank hinted at the likeliness that rates would now stay at current levels for the next periods, removing some hawkishness to the earlier decision.

The central bank kept the upbeat outlook on the Nordic economy nonetheless, reiterating that capacity is running above normal levels, inflation is around the bank’s target and fundamentals look solid.

EUR/NOK significant levels

As of writing the cross is gaining 0.40% at 9.9047 and faces the next hurdle at 9.9371 (21-day SMA) seconded by 9.9759 (23.6% Fibo of the July-August rally) and then 10.0694 (high Aug.29). On the flip side, a breach of 9.8098 (monthly low Sep.19) would expose 9.8029 (100-day SMA) and finally 9.7675 (200-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.