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EUR/NOK sinks below 9.40 on Norges Bank

The Norwegian krone is appreciating further vs. the euro today, dragging EUR/NOK to fresh 2-day lows in sub-9.4000 levels.

EUR/NOK lower post-Norges Bank

The cross has seen its downside renewed today after the Norges Bank lowered its key policy rate by 25 bp to 0.50%, in line with market consensus.

The Nordic central bank has justified its decision in response to lower global growth prospects and lower interest rates overseas. In addition, the central bank sees the domestic economy slowing down its pace and the unemployment ticking higher.

Norges Bank has also left the door open for further rate cuts in the next months.

EUR/NOK significant levels

As of writing the cross is retreating 0.55% at 9.4292 facing the next support at 9.2936 (200-day sma) followed by 9.2659 (2016 lows Mar.10) and then 9.1220 (monthly low Sep.10 2015). On the other hand, a breakout of 9.5085 (50% Fibo of 9.7505-9.3052) would aim for 9.5339 (55-day sma) and finally 9.6364 (76.4% Fibo of 9.7505-9.3052).

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