EUR/NOK struggles for direction below 9.9000 post-Norges Bank
- EUR/NOK trades without clear direction in sub-9.90 levels.
- The Norges Bank left the policy rate unchanged at 0.25%.
- The next rate hike could come at the December meeting.
The Norwegian krone alternates gains with losses vs. the single currency and prompts EUR/NOK to keep a tight range below the 9.9000 area on Thursday.
EUR/NOK: Upside capped by 9.9000
EUR/NOK so far charts another inconclusive session, always below the 9.9000 yardstick and in the wake of the Norges Bank monetary policy meeting.
Indeed, the Nordic central bank left the key rate unchaged at 0.25%, although it signalled a potential hike at the December meeting.
The central bank noted that the economic recovery pushed the activity back to pre-pandemic levels, while the unemployment receded further and underlying inflation still runs below the back’s target.
The Norges Bank also acknowledged the lingering uncertainty coming from the pandemic and added that current supply constraints could add to the already elevated inflation and temper the economic upturn.
The recovery in prices of the European reference Brent crude also lends support to NOK so far.
EUR/NOK significant levels
As of writing the cross is losing 0.09% at 9.8664 and faces the next resistance at 9.9021 (monthly high Nov.3) followed by 10.0000 (round level) and then 10.0466 (55-day SMA). On the other hand, a breach of 9.7869 (20-day SMA) would open the door to 9.7197 (monthly low Nov.1) and finally 9.6624 (2021 low Oct.21).