EUR/NOK plummets to lows near 9.47 on NB

The Norwegian Krone is quickly appreciating vs. its European peer on Thursday, with EUR/NOK dropping to as low as sub-9.4700 levels following a steady Norges Bank.

EUR/NOK weaker post-Norges Bank

NOK met extra buying interest after the Norges Bank left unchanged its key rate at 0.50%, broadly in line with market consensus.

The Norges Bank said inflation figures might extend the downtrend in the next months, although it is expected to tick higher in response to increased domestic activity and dwindling unemployment. Inflation expectations, in the meantime, stay firmly anchored.

The central bank also noted capacity utilization in the economy appears higher that previously assessed, while the key issue of household indebtedness should ease in light of lower house price inflation.

In today’s Monetary Policy Report (MPR), key rates are seen at 0.5% the remainder of this year and next, ‘rising gradually from 2019’.

EUR/NOK has quickly dipped to 2-day lows in the wake of the NB’s decision, although it remains in the upper end of the yearly range, with tops just above 9.5800 the figure (May 5).

EUR/NOK significant levels

As of writing the cross is retreating 0.42% at 9.4869 and a breakdown of 9.4354 (low Jun.19) would expose 9.3983 (low Jun.14) and then 9.3745 (55-day sma). On the flip side, the next up barrier lines up at 9.5412 (high Jun.20) seconded by 9.5817 (2017 high May 5) and then 9.7511 (2016 high Jan.21).