FxWirePro: Norwegian Krone rallies to 1-week peak after Norges Bank cuts rates to zero
The Norwegian Krone surged to a 1-week peak after Norway's central bank cut its policy rate to zero, seeking to cushion an economy reeling from the COVID-19 pandemic. The Norges Bank cut its benchmark interest rate by 25…
The Norwegian Krone surged to a 1-week peak after Norway's central bank cut its policy rate to zero, seeking to cushion an economy reeling from the COVID-19 pandemic.
The Norges Bank cut its benchmark interest rate by 25 bps to a record low of 0 percent, while markets were expecting the rate to be left at 0.25 percent.
It was Norges Bank’s third rate cut in less than two months, slashing the cost of borrowing from 1.5 percent.
USD/NOK trades 0.3 percent down at 10.2407, having touched a low of 10.2043 earlier, its lowest April 30.
Immediate resistance is located at 10.3431, close above could take it till 10.3782 (20-EMA).
On the downside, support is around 10.1925, break below could take it till 10.1727 (55-EMA).
