EUR/NOK DIVES TO MULTI-DAY LOWS NEAR 11.2000 POST-NORGES BANK

The Norwegian kroner gathers extra steam and forces EUR/NOK to recede to multi-day lows near 11.2000 on Thursday.

EUR/NOK weaker on NB rate hike

EUR/USD added to the ongoing weekly leg lower and revisited the 11.2500/2000 band after the Norges Bank (NB) raised the policy rate by 25 bps at its gathering earlier in the session.

In fact, the Nordic central bank said the move higher in rates comes in response to the elevated inflation – which remains stubbornly above the bank’s target – and amidst rising wage growth and the persistent tight labour market, while the weaker currency has been also playing its role.

The NB, in addition, noted that the economic activity remains healthy despite the growth in the Scandinavian economy appears to be losing some momentum.

The central bank also left the door open to another hike at the May meeting in case developments play out as the bank’s expect and sees rates at around 3.5% by the summer.