EUR/NOK bounces off 4-week lows near 10.0500

The selling pressure in the Norwegian Krone is motivating EUR/NOK to bounce off recent multi-week lows in the 10.0500 region.

EUR/NOK up on soft CPI, oil

After three consecutive weeks with gains, NOK has started the current week on a soft note in the wake of inflation figures for the month of October and in response to the moderate drop in crude oil prices.

Indeed, prices of the European benchmark Brent crude are down more than 1% today following renewed concerns from the US-China trade front. In fact, negotiations around the ‘Phase One’ deal remain stagnant, particularly after President Trump said on Friday there is still no decision on rolling over part of the existing tariffs.

Also weighing on NOK, inflation figures published today noted headline consumer prices failed to surprise markets to the upside, rising in line with estimates 0.2% MoM and 1.8% over the last twelve months, matching the Norges Bank’s target.

In addition, CPI-ATE (prices stripping food, alcohol and tobacco costs) remained stable at 2.2% from a year earlier, just a tad below the central bank’s 2.3% goal.

EUR/NOK significant levels

As of writing the cross is up 0.46% at 10.0969 and faces the next hurdle at 10.1589 (21-day SMA) followed by 10.2439 (high Oct.18) and then 10.3130 (all-time high Oct.29). On the flip side, a breach of 10.0505 (monthly low Nov.11) would expose 10.0319 (55-day SMA) and finally 10.0009 (low Oct.11).