FXStreet (Edinburgh) – The Norwegian krone is rapidly losing ground vs. its rivals on Thursday, with EUR/NOK printing fresh daily tops around 8.7500.
EUR/NOK stronger on Norges Bank
The cross has appreciated further after the Norges Bank lowered its key policy rate by 25 bp to 1.00% today, matching consensus expectations. The krone depreciated to the area of 8.7500 vs. the single currency, albeit it still remains within the recent weekly range.
Analysts at Danske Bank see today’s rate cut as the last one, adding “Post June we think the end of Norges Bank easing together with ECB QE will drag the cross lower. We still target EUR/NOK at 8.45 in 3M, 8.25 in 6M and 8.15 in 12M”.
EUR/NOK relevant levels
At the moment the cross is gaining 0.65% at 8.7381 with the next hurdle at 8.7593 (high Jun.17) ahead of 8.7690 (10-d MA) and finally 8.8469 (high Jun.12). On the other hand, a breakdown of 8.6825 (low Jun.12) would open the door to 8.6420 (21-d MA) and then 8.6243 (daily cloud top).
(Market News Provided by FXstreet)