EUR/NOK drops near 8.35 on Norges Bank

FXStreet (Edinburgh) - The Norwegian krone is now rapidly appreciating vs. its European peer, dragging EUR/NOK to weekly lows near 8.35.

EUR/NOK weaker post NB decision

The cross is testing fresh lows after the Norges Bank left unchanged its refi rate at 1.25% in today’s meeting, against consensus for a 25 bp rate cut. However, the Nordic central bank left the door open for further easing at its meeting in June.

The Norges Bank justified its decision after acknowledging that the domestic economy has been performing ‘broadly in line with March projections’.

EUR/NOK relevant levels

At the moment the cross is retreating 0.79% at 8.3631 and a breach of 8.3460 (low Apr.29) would expose 8.3230 (low Apr.16) and then 8.2990 (low Oct.24). On the upside, the next hurdle lines up at 8.4414 (high Apr.20) followed by 8.5370 (high Apr.23) and finally 8.5445 (200-d MA).

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