The EUR/NOK currency pair was a notch weaker on Thursday following Norway’s manufacturing data and ahead of the outcome of the ECB’s March policy meeting.
Norwegian manufacturing production stalled in January compared to a month earlier, data by Statistics Norway showed. That followed a 0.3% increase in December.
In annual terms, the nation’s manufacturing output shrank 0.3%, while reversing a 0.6% surge in December.
In January, production rebounded for non-ferrous metals, printing reproduction and repair and installation of machinery. Output dropped for food, beverages and tobacco, refined petroleum, chemicals and pharmaceuticals as well as for basic metals.
Meanwhile, the European Central Bank is largely expected to leave the main refinancing operations rate unchanged at a 22-year high of 4.5% and the deposit facility rate – at an all-time high of 4%.
The ECB press conference will be closely watched for clues on the timing of the first rate cut.
ECB officials have agreed that it is premature to talk about interest rate cuts, despite recent indications of easing inflationary pressures across the Euro Area.
Markets are pricing about 90 basis points of rate cuts from the European Central Bank this year, with monetary policy easing expected to begin in June.
Currency Pair Performance
As of 11:16 GMT on Thursday the EUR/NOK currency pair was edging down 0.28% to trade at 11.3980.
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