News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here:
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here:
EURNOK Downtrend Intact Amid Norges Bank Rate Decision

EURNOK Downtrend Intact Amid Norges Bank Rate Decision

Justin McQueen, Strategist

EURNOK Analysis and Talking Points

  • Pressure on EUR NOK continues with widening Monetary Policy Divergence
  • Hawkish stance from Norges Bank to be maintained

See our Q2 FX forecast to learn what will drive the EUR, NOK currency through the quarter.

How EURNOK will be impacted by Monetary Policy Divergence

Last week, the ECB announced its guidance on interest rates. However, Euro bulls were left disappointed when the ECB stated that the “key interest rates to remain at their present levels at least through the summer of 2019”. This had been against money market expectations of a 10bps rate hike by mid-2019, as such, this suggests that the first live meeting will be September 2019. In comparison with the Norges Bank, they have continued to state that rates will be raised after this summer, which in turn, indicates that rate lift off will take place at the September meeting. Subsequently, this has seen the EURNOK downtrend since the beginning of the year in full swing (-4% YTD), with the potential for this to persist.

Hawkish Norges Bank

The latest Norges Bank rate decision will take place on Thursday at 8:00GMT, followed by Governor Olsen’s press conference at 8:30GMT. Heading into the meeting, it is likely that the Norges Bank will maintain its hawkish stance and signal that rates are to rise in Autumn, which will support the Norwegian Krone. This is despite falling inflation readings, which have continued to surprise to the downside. However, growth remains firm, while the latest regional network report suggested that strong growth and solid labour will close output gap. Consequently, this argues that rates are to be hiked sooner rather than later, which in turn, suggests that EURNOK shorts continue to remain attractive.

EURNOK PRICE CHART: Daily Time Frame (December 2016-June 2018)

EURNOK Downtrend Intact Amid Norges Bank Rate Decision

Chart by IG

EURNOK Technical Levels

On the downside, focus will be on the post ECB low, which resides just south of the 9.40 level, whereby a firm break below could put EURNOK on course for 9.39, which coincides with the 50% retracement of the 8.7889-9.9943 rise. While on the upside, 9.50 continues to act as resistance.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.