EUR/NOK stays near daily lows post-NB

• Norges Bank left the repo rate unchanged.
• NOK keeps appreciating.
• Norway jobless rate at 4.1%.

The Norwegian Krone keeps gathering pace during the second half of the week and is dragging EUR/NOK to he lower end of the range around 9.58/59, close to YTD lows.

EUR/NOK weaker on steady NB

NOK picked up extra pace after the Norges Bank left unchanged its key policy rate at 0.50%, as broadly expected. Market participants have largely anticipated today’s outcome at the meeting, while expectations of a potential rate hike remain biased towards year-end.

The Nordic central bank deemed necessary a continuation of the expansionary monetary policy, while domestic capacity is still running below normal levels. Regarding inflation, the NB expects consumer prices to remain below 2.5% in the next years.

Earlier in the session, the unemployment rate came in at 4.1% during November, a tad above estimates at 4.0% and October’s 4.0%.

In the meantime, NOK is appreciating for the fifth week in a row and it has already gained more than 4% since 2017 tops near the critical 10.000 handle seen in the second half of December.

EUR/NOK significant levels

As of writing the cross is losing 0.25% at 9.5880 and a breakdown of 9.5711 (2018 low Jan.18) would open the door to 9.4895 (200-day sma) and then 9.4289 (low Nov.7 2017). On the other hand, the next hurdle lines up at 9.6592 (high Jan.23) seconded by 9.6766 (21-day sma) and finally 9.7004 (high Jan.15).