EUR/NOK challenges weekly highs near 9.6600
|- The Norwegian Krone keeps losing ground on Friday.
- Brent crude recedes from 2019 highs around $70.00/bbl.
- Norway Manufacturing Production contracted 0.3% MoM.
The Norwegian Krone is depreciating for another session today, helping EUR/NOK to challenge weekly highs in the 9.6600/6700 area.
EUR/NOK looks to risk trends, crude oil
NOK keeps shedding ground after recent tops in the 9.6000 region vs. its European peer seen earlier in the week.
Today’s weakness around the Krone comes in tandem with the correction lower in the barrel of European reference Brent crude from yesterday’s fresh 5-month peaks in the critical $70.00 mark.
In the data space, Norway Manufacturing Production failed to meet forecasts today, contracting 0.3% in February from a month earlier and extending the negative trend after January’s 0.1% contraction.
Earlier in the week and still in the Scandinavian economy, the House Price Index rose at an annualized 3.2% in March (from 3.0%) and the manufacturing PMI rose to 56.8 for the same period.
What to look for around NOK
The mood around the risk complex, Brent-dynamics and solid fundamentals continue to be the main drivers for the Norwegian currency for the time being. In the broader picture, fundamentals in the Nordic economy remain strong and the Norges Bank is expected to hike rates once again at the June meeting. This view has been reinforced by the recent auspicious results from the latest Regional Network Survey, which stressed the growth outlook for the economy remains strong.
EUR/NOK significant levels
As of writing the cross is gaining 0.13% at 9.6610 and faces the initial hurdle at 9.6763 (21-day SMA) seconded by 9.7143 (55-day SMA) and then 9.7468 (high Mar.28). On the flip side, a break below 9.6033 (low Apr.3) would aim for 9.5896 (low Mar.21) and finally 9.5533 (78.6% Fibo of the October-December rally).
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