Norges Bank indicates future rate path

It was clear that Norges Bank was going to cut rates. The Norwegian central bank surprised by signalling a further rate cut in September in an unusually clear manner for a central bank. The likelihood was higher than 50%,  but that September cut would be it. 

Following the decision EUR-NOK shot up from levels close to 8.65 to above 8.80. However, EUR-NOK has recently been running out of steam in this area. 

"A 25bp cut do not really make that much of a difference for a currency, they are mainly relevant if they make further rate steps more likely", states Commerzbank.