- The cross moves to multi-week tops near 9.8500.
- Norway CPI surprised to the downside in January.
- Sell-off in Brent crude weighs on NOK.
The Norwegian currency is extending the downbeat mood at the beginning of the week and is helping EUR/NOK to advance to new multi-week highs near the 9.8500 handle.
EUR/NOK up post-CPI, looks to Brent
NOK has accelerated the downside today and pushed the cross to fresh tops after inflation figures in the Scandinavian economy disappointing prior surveys for the month of January.
In fact, consumer prices gauged by the CPI contracted 0.5% inter-month and rose 3.1% from a year earlier. In addition, Core CPI YTD rose 2.1% and monthly Core Inflation dropped 0.7%. further data saw Producer Prices advancing 4.9% over the last twelve months from December’s 7.7% gain.
In the same line, prices of the European reference Brent crude are prolonging the sideline theme around the $62.00 mark so far today, while the sentiment in the risk-associated universe remains somewhat deteriorated, all impacting on NOK.
What to look for around NOK
The mood around the risk complex and Brent-dynamics 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 set to hike rates twice this year, with the next raise likely to be in March. This view has been reinforced by the December Regional Network Survey, which stressed the growth outlook for the economy remains strong. In addition, the first quarter is usually NOK-positive reinforced by tighter conditions in structural liquidity.
EUR/NOK significant levels
As of writing the cross is gaining 0.45% at 9.8152 and a break above 9.8386 (high Feb.11) would aim for 9.9937 (2017 high Dec.21) and finally 10.0572 (2018 high Dec.27). On the flip side, the next down barrier emerges at 9.7679 (55-day SMA) seconded by 9.7226 (21-day SMA) and then 9.6424 (2019 low Feb.1).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.