EUR/NOK tumbles to 2-day lows near 9.68 on Norges Bank

• The Norwegian Krone sharply appreciated to the 9.68 area on Thursday.
• Norges Bank left the key rate unchanged at 0.50% today, as expected.
• Norges Bank still plans to hike after the summer.

The Norwegian Krone picked up extra steam on Thursday and forced EUR/NOK to drop to 2-day lows in sub-9.6800 levels in the wake of the Norges Bank meeting.

EUR/NOK offered post-NB

Fresh buyers rushed into NOK today after the Norges Bank left unchanged its key rate at 0.50% at today’s meeting, matching the broad consensus.

The Scandinavian central bank noted the economy remains strong, in line with the latest Monetary Policy Report (MPR) published in March, and it now sees inflation picking up pace despite underlying inflation is currently running below the bank’s target.

The Nordic central bank reiterated that a rate hike is likely after the summer, in line with the March’s projection.

In the meantime, the cross remains within the recent range and always keeping an eye on the domestic household debt, crude oil dynamics and prospects of higher rates in the near future.

EUR/NOK significant levels

As of writing the cross is losing 0.27% at 9.6797 and a breakdown of 9.6615 (100-day sma) would open the door to 9.6382 (21-day sma) and then 9.6277 (low Apr.27). On the upside, the next hurdle emerges at 9.7258 (high May 1) seconded by 9.8812 (2018 high Feb.9) and finally 9.9950 (high Dec.12 2017).