EUR/NOK drops to lows post-Norges Bank

The Norwegian krone has accelerated its appreciation vs. the euro today, sending EUR/NOK to test fresh lows in sub-9.3300 levels.

EUR/NOK lower on steady NB

NOK met extra buying pressure after the Norges Bank left its monetary policy unchanged at today’s meeting, with the benchmark rate intact at 0.50%.

Governor Olsen noted that global growth has been moderate and energy prices have ticked higher since March, while uncertainty around the UK referendum kept weighing on financial markets.

On the domestic camp, Olsen said NOK has been stronger than estimated and he now expects economic growth to remain weak despite a potential pick up in demand following higher oil prices. Olsen has also showed concerns on the speed and potential extent of the current rise in the housing sector. Regarding inflation, NB sees lower wage growth and NOK strength to weigh on consumer prices in the next periods.

EUR/NOK significant levels

As of writing the cross is retreating 0.28% at 9.3446 facing the next support at 9.3177 (20-day sma) followed by 9.3021 (55-day sma) and then 9.1924 (low Jun.8). On the other hand, a breakout of 9.3866 (100-day sma) would aim for 9.3964 (200-day sma) and finally 9.4561 (high Jun.17).