2 Feb 2015
EUR/NOK rebounds from 8.7100
FXStreet (Edinburgh) - The Norwegian krone is shedding some of the recent gains vs. the shared currency, with EUR/NOK hovering over 8.7600.
EUR/NOK subdued after NB
Today’s rebound would be looking to trim part of the significant pullback last Friday, when the NOK sharply appreciated following the announcements by the Norges Bank. The Nordic central bank will buy NOK 700 billion per day during February, and with oil prices stabilizing in the near term, any occasional gains in the cross could be limited.
“At the meeting, we expect the central bank to cut rates and remain very dovish, implying that the market will price in additional rate cuts after the decision”, suggested Jens Pedersen, Senior Analyst at Danske Bank.
EUR/NOK levels to consider
At the moment the cross is advancing 0.30% at 8.7585 with the next hurdle at 8.7950 (high Jan.27) ahead of 8.8030 (10-d MA) and then 8.8900 (high Jan.22). On the other hand, a breakdown of 8.6713 (low Jan.23) would open the door to 8.6250 (low Dec.4) and finally 8.6010 (100-d MA).
EUR/NOK subdued after NB
Today’s rebound would be looking to trim part of the significant pullback last Friday, when the NOK sharply appreciated following the announcements by the Norges Bank. The Nordic central bank will buy NOK 700 billion per day during February, and with oil prices stabilizing in the near term, any occasional gains in the cross could be limited.
“At the meeting, we expect the central bank to cut rates and remain very dovish, implying that the market will price in additional rate cuts after the decision”, suggested Jens Pedersen, Senior Analyst at Danske Bank.
EUR/NOK levels to consider
At the moment the cross is advancing 0.30% at 8.7585 with the next hurdle at 8.7950 (high Jan.27) ahead of 8.8030 (10-d MA) and then 8.8900 (high Jan.22). On the other hand, a breakdown of 8.6713 (low Jan.23) would open the door to 8.6250 (low Dec.4) and finally 8.6010 (100-d MA).