EUR/NOK off 2-month highs above 10.08

EUR/NOK trades close to YTD highs in the vicinity of 10.10.
NOK gains some momentum after CPI came in above estimates.
Brent crude stays sidelined around $58.00 per barrel.

Pablo Piovano FXStreet

The Norwegian Krone has regained some composure and is now dragging EUR/NOK back to the 10.06 region after climbing beyond 10.08 earlier in the session.

EUR/NOK looks to data, oil

The cross is trading on the defensive for the first time after three consecutive daily advances, although the up move in the cross remains well and sound for the second week in a row so far.

The Krone regained shine lost on Thursday after consumer prices in the Scandinavian economy surprised to the upside during September.

Indeed, headline consumer prices rose 0.5% inter-month and 1.5% from a year earlier, while the Core CPI YTD rose 2.2% (vs. 21.% exp.) and Core Inflation gained 0.6% on a monthly basis (vs. 0.5% forecasted).

Further data saw Producer Prices contracting at an annualized 10.7%.

In addition, the better tone in NOK comes on the back of the recovery in prices of the European reference Brent crude, which are approaching the $59.00 mark per barrel.

EUR/NOK significant levels

As of writing the cross is losing 0.17% at 10.0463 and a breach of 9.9954 (10-day SMA) would expose 9.9382 (55-day SMA) and finally 9.8855 (low Sep.30). On the upside, the next resistance aligns at 10.0856 (monthly high Oct.10) seconded by 10.0972 (high Aug.7) and then 10.1174 (monthly high Dec.2008).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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