FxWirePro: Norwegian Krone hits 1-week peak as Norges Bank keeps interest rate on hold
The Norwegian Krone rallied to a 1-week peak following Norway central bank's interest rate decision. The Norges Bank held its benchmark interest rate at an all-time low of 0 percent, after delivering three cuts earlier i…
The Norwegian Krone rallied to a 1-week peak following Norway central bank's interest rate decision.
The Norges Bank held its benchmark interest rate at an all-time low of 0 percent, after delivering three cuts earlier in the year to cushion an economy reeling from the COVID-19 pandemic.
The central bank had expected to keep rates at 0 peercent until the end of 2023, but its updated forecasts showed that it now expects an earlier hike.
Moreover, a rise in the crude oil prices further boosted the bid tone around the Norwegian currency.
Crude oil prices surged, erasing early session losses ahead of a meeting of OPEC members and their allies against the backdrop of demand concerns over new coronavirus cases in China and U.S.
USD/NOK trades 0.5 percent lower at 9.4654, having touched a low of 9.4420 earlier, its lowest June 11.
Immediate resistance is located at 9.6178 (21-DMA), close above could take it till 9.6536.
On the downside, support is around 9.4234,.break below could take it till 9.3786.
