The EUR/NOK pair manages to leave behind Wednesday’s daily decline and regains upside traction, as investors continue to adjust to the somewhat dovish tilt in the Norges Bank.
The Scandinavian central bank raised the policy rate by half point to 2.25% at its meeting earlier on Thursday, although it linked the prospects for extra rate hikes to the progress of inflation.
The Norges Bank reiterated that inflation remains well above the bank’s target, although some signs of cooling in the economy could morph into some deceleration of inflationary pressures. The bank sees rates at around 3% over the winter.
As of writing the cross is gaining 0.48% at 10.2228 and the next resistance emerges at 10.3198 (monthly high September 20) followed by 10.5393 (2022 high June 16) and then 10.6323 (monthly high August 20, 2021). On the downside, a drop below 10.1260 (weekly low September 22) would open the door to 9.9884 (200-day SMA) and finally 9.8313 (monthly low September 6).
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