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NOK gains as Norges Bank holds rate at 4.00% – BBH

Norwegian Krone (NOK) strengthens as the Norges Bank keeps policy steady at 4.00% and signals cautious future rate cuts, BBH FX analysts report.

Norges Bank signals gradual easing ahead

"NOK outperforms. As was widely expected, the Norges Bank kept the policy rate on hold at 4.00% and maintained its cautious easing guidance. The Norges Bank reiterated that 'the policy rate will be reduced further in the course of the coming year', while stressing that 'a restrictive monetary policy is still needed' because inflation is still too high."

"The Norges Bank has penciled in one 25bps cut in the next 12 months while the swaps market implies 40bps of easing. In our view, persistently above target inflation backs the Norges Bank’s prudent easing of monetary policy stance and is NOK supportive."

EUR/JPY steady as Eurozone retail sales meet expectations, BoJ minutes hawkish

EUR/JPY trades without a clear trend on Thursday, hovering around 177.00, virtually unchanged on the day. The pair remains stable after the release of mixed data from both the Eurozone and Japan, maintaining a fragile balance between the two currencies.
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USD/CNH: Likely to trade in a range of 7.1220/7.1350 – UOB Group

US Dollar (USD) is likely to trade in a range of 7.1220/7.1350. In the longer run, there is scope for USD to test 7.1450.
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