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EUR/NOK off lows after CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The Norwegian krone is sharply higher vs. the single currency on Monday, dragging EUR/NOK to fresh lows near 9.6500 the figure.

    EUR/NOK off highs on inflation figures

    The cross has left the area of recent multi-year highs around 9.7300 after inflation figures in the Nordic economy have come in on the softer side. In fact, domestic consumer prices have contracted 0.4% on a monthly basis and have gained 2.3% on a year to December. Core prices have risen 3.0% YTD during the last month.

    In the meantime the pair keeps the trade in the upper bound of the range, alleviating fears of a potential rate cut by the Norges Bank at its March meeting. However, the ongoing weakness around crude oil prices could cast a mantle of doubt regarding the future steps of the Nordic central bank.

    EUR/NOK levels to consider

    The cross is now losing 0.17% at 9.6545 and a surpass of with the immediate support at 9.5760 (23.6% Fibo of 9.0832-9.7277) followed by 9.4186 (55-day sma) and then 9.3628 (100-day sma). On the other hand, a breach of 9.7277 (high Jan.7) would pave the way to 9.8646 (high Fe.16 2014).
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