EURNOK grinds higher after Norges Bank hikes 25 bps, suggesting a gradual approach – SocGen
EURNOK advances to 10.37 after Norges Bank, which had opted for hikes of 50 basis points at previous rate meetings, hikes by 25 bps. Economists at Société Générale analyze the pair's technical picture.
Norges Bank hikes rate by 25 bps
“Norges Bank raised the policy rate by 25 bps to 2.50%. A similar increase is on the cards in December. In the statement, the bank says there are signs that some areas of the economy are cooling down, and prospects for lower-than-expected freight and energy prices may curb inflation ahead. The 225 bps of increases since last December is beginning to have a tightening effect on the economy and this requires a gradual approach.”
“A short-term pullback is taking shape; a revisit of the 200-DMA near 10.05 is not ruled out. This is first layer of support. In case the pair fails to defend this MA, a deeper downtrend is likely towards 9.91 and the lower band of the channel at 9.72/9.70.”
“Short-term resistance is at 10.56, the 76.4% retracement of recent pullback.”
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.