- 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).
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'