Market news
18.08.2022, 08:21

EUR/NOK bounces off daily lows after the Norges Bank raised rates

  • EUR/USD rebounds from lows in the 9.8400 zone on Thursday.
  • The Norges Bank hiked the policy rate by 50 bps to 1.75%.
  • Mainland Norway GDP expanded 0.7% QoQ in the second quarter.

The Norwegian kroner gives away part of the earlier gains and motivates EURNOK to rebound from earlier lows near 9.8400 on Thursday.

EUR/NOK remains on the defensive post-Norges Bank decision

EUR/NOK fades pat of Wednesday’s string advance following the better tone in NOK after the Norges Bank raised the policy rate by 50 bps to 1.75% at its meeting on Thursday, matching the broad consensus.

The Nordic central bank also gave an upbeat assessment of the Scandinavian economy, highlighting the solid economic activity, low employment and the little spare capacity, all in a context where inflation keeps running higher than initially projected and well above the bank’s 2.0% goal.

The Norges Bank also left the door open to another rate hike at the September event.

Additional buying interest around the kroner comes from the so far modest gains in prices of the European benchmark Brent crude, which adds to Wednesday’s gains near the $94.00 mark per barrel.

Further data in Norway saw the Mainland GDP expand 0.7% QoQ in the April-June period.

EUR/NOK significant levels

As of writing the cross is losing 0.26% at 9.8593 and a breach of 9.7726 (monthly low August 10) would open the door to 9.7672 (monthly low May 5) and finally 9.4325 (2022 low April 8). On the upside, the next resistance emerges at 10.0194 (monthly high August 5) followed by 10.1503 (55-day SMA) and then 10.3987 (monthly high July 1).

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location