EUR/NOK navigates the middle of the daily range near 10.50 in the wake of the interest rate hike by the Norges Bank on Thursday.
EUR/NOK attempted a move higher earlier in the session, although the bullish attempt seems to have run out of steam around 10.52 despite the Norges Bank raised the key rate to 1.25% at its meeting on Thursday.
The Nordic central bank stressed that domestic fundamentals look solid and unemployment continues to decline. However, inflation is forecast to remain above the bank’s target for some time on the back of rising wage growth and prices of imported goods.
The Norges Bank also announced that the policy rate “will most likely be raised further to 1.5% in August”.
On another front, the Norwegian kroner appears indifferent to the current rebound in prices of the barrel of the European reference Brent crude, which regain the $111.00 mark after bottoming out near $107.00 on Wednesday.
As of writing the cross is gaining 0.09% at 10.4767 and faces the next resistance at 10.5393 (2022 high June 16) followed by 10.6323 (monthly high August 20 2021) and then 10.7035 (2021 high July 20). On the other hand, a breach of 10.3158 (weekly low June 21) would open the door to 10.0230 (monthly low June 1) and finally 9.9693 (200-day SMA).
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.