EUR/NOK struggles for direction below 9.9000 post-Norges Bank

EUR/NOK trades without clear direction in sub-9.90 levels.
The Norges Bank left the policy rate unchanged at 0.25%.
The next rate hike could come at the December meeting.

Pablo Piovano FXStreet

The Norwegian krone alternates gains with losses vs. the single currency and prompts EUR/NOK to keep a tight range below the 9.9000 area on Thursday.

EUR/NOK: Upside capped by 9.9000

EUR/NOK so far charts another inconclusive session, always below the 9.9000 yardstick and in the wake of the Norges Bank monetary policy meeting.

Indeed, the Nordic central bank left the key rate unchaged at 0.25%, although it signalled a potential hike at the December meeting.

The central bank noted that the economic recovery pushed the activity back to pre-pandemic levels, while the unemployment receded further and underlying inflation still runs below the back’s target.

The Norges Bank also acknowledged the lingering uncertainty coming from the pandemic and added that current supply constraints could add to the already elevated inflation and temper the economic upturn.

The recovery in prices of the European reference Brent crude also lends support to NOK so far.

EUR/NOK significant levels

As of writing the cross is losing 0.09% at 9.8664 and faces the next resistance at 9.9021 (monthly high Nov.3) followed by 10.0000 (round level) and then 10.0466 (55-day SMA). On the other hand, a breach of 9.7869 (20-day SMA) would open the door to 9.7197 (monthly low Nov.1) and finally 9.6624 (2021 low Oct.21).

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 holds above 1.1750 after mixed EU PMI data

EUR/USD manages to hold above 1.1750 but struggles to gather recovery momentum on Friday, following the mixed February PMI figures from Germany and the Eurozone. In the second half of the day, Q4 GDP, December inflation and February PMI data from the US will be watched closely by market participants.

GBP/USD recovers further toward 1.3500 after UK PMI data

GBP/USD is recovering ground further toward 1.3500 in European trading on Friday, helped by a modest uptick in the Pound Sterling after stronger-than-expected UK January Retail Sales and February PMI data. However, the pair's further upside could be limited amid persistent US Dollar strength as the focus turns to key US data.

Gold sticks to positive bias above $5,000 ahead of US data

Gold gains some positive traction for the third consecutive day on Friday. holding above $5,000. Traders now look forward to the key US macro releases – the Advance Q4 GDP report and the Personal Consumption Expenditures (PCE) Price Index – for fresh trading impetus.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Iran tensions and AI fears at the forefront ahead of key US data

Thursday’s scorecard shows major US Stock benchmarks closed modestly in the red amid mounting US-Iran tensions and AI disruption worries. The S&P 500 shed 19 points (0.3%) to 6,861, the Nasdaq 100 lost 101 points (0.4%) to 24,797, and the Dow Jones Industrial Average dropped 267 points (0.5%) to 49,395.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.