NOK/SEK off highs, back to 1.1050

FXStreet (Edinburgh) - After reaching multi-month highs around 1.1150, NOK/SEK is now returning to the 1.10 vicinity.

NOK/SEK stronger post-Riksbank

The Nordic cross advanced to 4-month highs in the mid-1.1100s after the Riksbank surprised investors today by lowering its repo rate to -0.10% for the first time ever. The central bank said the decision came in order to counteract decreasing consumer prices in the Swedish economy. In addition, the Riksbank will purchase SEK 10 billion in government bonds and it remains ready to act further in case of need.

Ahead in session, the Norges Bank will publish its annual address with all the attention on the future rate path in Norway.

NOK/SEK key levels

The cross is now up 0.66% at 1.1033 with the next hurdle at 1.1155 (high Feb.12) and then 1.1308 (high Sep.30 2014). On the downside, a break below 1.0924 (low Feb.12) would aim for 1.0845 (low Feb.5).

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