USDNOK: Norges Bank kept interest rates unchanged as was widely expected at 1.5%. As this was an interim meeting we have no new interest rate path, or press conference.
The current assessment confirms the outlook of the economic developments in the December report. Uncertainties surrounding global developments persist. Inflation is close to target. The capacity utilisation in then economy is above the average level. With interest rates close to the current level, there are prospects that inflation will remain close to the inflation target. Balance of risks suggests that the policy rate will most likely remain at the current level in the coming months.
Earlier released the Norway Labour Force Survey which came in at 4% topping expectations of 3.8% in November.
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USDNOK Stalls at 50-day MA
USDNOK trades 0.15% higher at 8.9906 giving up some gains added after the release of the interest rate decision. Norges Bank as we have discussed yesterday in our analysis “NOK: Norges Bank January Rate Meeting: What to Expect?” kept the rates at 1.5%.
The pair continues the rebound from January’s low at 8.7556. The upward move gained some momentum after the pair pierced above the 200-day moving average.
On the upside the initial resistance will be met at 9.006 the daily high, just below the 50-day moving average. Strong supply zone is defined by the 100-day moving averge at 9.0499.
On the downside first support stands at 8.9608 the daily low. Next support would be met at 8.9197 the low from January 21st. The 200-day moving average at 8.8892 will provide the next support area.
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