Archived IMT (2009.03.25)

NOK loses across the board after the Norwegian central bank cuts by 50 bps to 2.00% as was widely expected but the decision is especially NOK bearish as the central banks outlook for interest rates is further downgraded to 1.00% in autumn, as well as downgrading its 2009 core CPI outlook to 2.5% (banks target) from previous forecast of 3.00%. EURNOK seen testing the 8.7730 top of the channel, while USDNOK could garner prolonged gains towards 6.60 from 6.46.