Although the Norwegian inflation figures for March look a little better again after the significant upward surprise at the beginning of the year, Norges Bank is still likely to wait until June before lowering the key rate, Commerzbank's FX analyst Antje Praefcke notes.
EUR/NOK's recent breakout attempt above 12.05 was short-lived, as strong resistance pushed the pair back into its consolidation range. Key support at 11.68 now becomes critical for the near-term outlook, Societe Generale's FX analysts report.
As we expected, Norges Bank left the policy rate unchanged last week. After all, the interest rate path from December did not necessarily imply an interest rate cut in March.