EUR/NOK flirts with multi-day highs around 10.0450

EUR/NOK adds to Wednesday’s gains above 10.0000.
The Norges Bank left the key policy rate unchanged at 0.00%.
The Nordic central bank is expected to hike rate in H2 2021.

Pablo Piovano FXStreet

The Norwegian currency loses further ground and pushes EUR/NOK to the area of multi-day highs near 10.0450 on Thursday.

EUR/NOK higher post-Norges Bank

The krone depreciates further and adds to Wednesday’s losses despite the Norges Bank left unchanged the policy rate, as widely anticipated, and crude oil prices edge higher.

Indeed, the Scandinavian central bank matched forecasts and left the key rate unchanged at 0.00% at its meeting on Thursday. The Norges Bank once again acknowledged the solid fundamentals of the Nordic economy as well as the good pace of the vaccine rollout, all morphing into extra support to the already strong growth prospects.

The Norges Bank reiterated the likelihood that a rate hike could materialize in the second half of the year.

As said, NOK trades on the defensive despite the European reference Brent crude posts decent gains just below the $69.00 mark per barrel so far on Thursday, partially reversing Wednesday’s pullback.

What to look for around NOK

NOK extends the rebound from recent tops below the psychological 10.00 mark per EUR. As usual, price action around the krone is expected to track Brent dynamics and the hawkish stance from the Norges Bank. That, coupled with a faster economic recovery, the firm vaccine rollout and prospects of a solid rebound in the global activity are seen collaborating with the view of a stronger currency in the medium-term. It is worth recalling that the Norges Bank is predicted to be one of the first central banks to hike rates in the DM space.

EUR/NOK significant levels

As of writing the cross is up 0.32% at 10.0350 and faces the next resistance at 10.0849 (50-day SMA) seconded by 10.2749 (weekly high Mar.24) and then 10.4826 (monthly high Feb.26). On the other hand, a breach of 9.9116 (2021 low Apr.29) would expose 9.8163 (2020 low Jan.2) and finally 9.5552 (2019 low Apr.22).

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 treads water near 1.1800 ahead of ECB rate decision

EUR/USD is keeping its range at around 1.1800 in the European trading hours on Thursday. The pair awaits the European Central Bank interest rate decision for fresh impetus after the Eurozone inflation declined well below the central bank's 2% target.

GBP/USD stays weak toward 1.3600 on BoE's 'Super Thursday'

GBP/USD holds its losses for the second successive session, directed toward 1.3600 in European trading on Thursday. The pair weakens as the Pound Sterling comes under pressure ahead of the Bank of England’s interest rate decision due later in the day.

Gold recovers major part of intraday losses to sub-$4,800 levels; down a little on firmer USD

Gold rebounds swiftly following the Asian session fall to sub-$4,800 levels and climbs back above the $4,900 mark in the last hour, though the upside potential seems limited. Wednesday's softer US ADP report pointed to labor market weakness and strengthened the case for interest rate cuts by the Federal Reserve, lending support to the non-yielding yellow metal.

BTC steadies as bears shift focus toward $70,000

Bitcoin price remains under pressure so far this week, with the Crypto King slipping below $73,000 on Tuesday for the first time since November 2024. The price dip in BTC was fueled as the news came in late Tuesday that the US military shot down an Iranian drone that “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea.

European Central Bank seen holding interest rates, reinforcing its wait-and-see stance

The European Central Bank is holding its two-day meeting and will announce its monetary policy decision on Thursday. The ECB is widely expected to keep interest rates on hold for the fifth consecutive meeting, leaving the main refinancing operations, the marginal lending facility, and the deposit facility at 2.15%, 2.4%, and 2%, respectively.

Top Crypto Losers: Zcash, Stacks, BNB drop further as Bitcoin weakens

Zcash, Stacks, and BNB (formerly Binance Coin) are among the biggest losers over the last 24 hours as Bitcoin approaches $72,000. The correction is driven by multiple factors, including massive, steady outflows from institutions and large-wallet investors, broader-market risk-off sentiment, and the delay in the Digital Asset Clarity Act.