FxNews—In November 2024, the Norges Bank kept its key policy rate steady at 4.5%, marking the seventh meeting without a change. This decision met market expectations, and the bank indicated that it would likely hold the rate again in December.
As previously forecasted, the central bank suggested that interest rate cuts might start in early 2025. While the bank recognizes the need for a restrictive monetary policy to control inflation, it has delayed easing compared to other European central banks.
Norges Bank Keeps Rates High as Krone Drops
The Norges Bank also mentioned that the Norwegian krone’s significant drop supports keeping interest rates high. However, policymakers acknowledged that the tightening of monetary policy has already slowed the economy and softened the labor market, leading to a bigger-than-expected decrease in inflation this year.
USDNOK Forecast – 7-November-2024
The American currency slipped below the 38.2% Fibonacci retracement level at 10.87 against the Norwegian Krone in today’s trading session, making a %2.18 loss. As of this writing, the USD/NOK pair trades at approximately 10.83.
The immediate resistance is at 10.87. From a technical standpoint, the current bearish wave will likely extend to the 50% Fibonacci at 10.78 if the immediate resistance holds.
Please note that the bearish strategy should be invalidated if bulls pull the USD/NOK price above the 10.87 mark.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
