EUR/NOK recedes from tops, looks for direction near 9.78
|- EUR/NOK appears consolidative so far this week.
- Regional Network Survey surprised to the upside on Tuesday.
- Norges Bank expected to hike rates next week.
The Norwegian Krone is now regaining some traction and motivates EUR/NOK to retreat from earlier tops beyond 9.7900 and situates just above the 9.7800 handle.
EUR/NOK volatile on data, oil
The cross has resumed the upside on Wednesday following Tuesday’s negative price action in response to mixed results from the Nordic calendar.
In fact, NOK came under some selling pressure yesterday after inflation figures in the Scandinavian economy came in below expectations during May. However, the weakness was short-lived, particularly after the Norges Bank‘s Regional Network Survey showed the solid health of the Norwegian economy stays everything but abated, all pointing to another rate hike by the central bank at next week’s meeting.
Also weighing on NOK today, prices of the barrel of the European reference Brent crude are down more than 2% at levels just above the psychological $60 mark.
What to look for around NOK
The mood around the risk complex, Brent-dynamics and a healthy economy continue to be the main drivers for the Norwegian currency for the time being. Recent results from the Regional Network Survey showed fundamentals in the Nordic economy remain pretty solid, adding to the case of higher rates by the Norges Bank and a stronger Krone in the next months.
EUR/NOK significant levels
As of writing the cross is advancing 0.05% at 9.7788 and faces the next up barrier at 9.8318 (monthly high Jun.11) followed by 9.8761 (monthly high May 10) and then 9.8803 (monthly high Mar.8). On the other hand, a breach of 9.7534 (low Jun.10) would expose 9.7102 (low May 28) and finally 9.6834 (200-day SMA).
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