- 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.
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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.