- EUR/NOK regains the upside above the 10.00 mark.
- Norway CPI-ATE rose 2.0% YoY, 0.45 MoM.
- The barrel of Brent crude approaches the $69.00 mark.
The Norwegian krone gives away part of the earlier gains and now motivates EUR/NOK to retake the 10.00 mark and above on Monday.
EUR/NOK rebounds from 9.9500
After briefly testing daily lows in the 9.95 region earlier in the session, EUR/NOK managed to regain some composure and reclaim the 10.00 yardstick and above at the beginning of the week.
NOK remains on the defensive despite the European reference Brent crude is posting decent gains on Monday, although it still trades below the key hurdle at the $70.00 mark per barrel.
In the docket, the krone reverses earlier gains after inflation figures in Norway came in on the soft side in April. In fact, the headline CPI rose 0.3% and 3.0% YoY, while the CPI-ATE gained 0.4% inter-month and 2.0% from a year earlier.
What to look for around NOK
NOK loses some momentum although it manages well to keep the trade around the critical 10.00 yardstick. As usual, price action around the krone is expected to track Brent dynamics and the hawkish stance from the Norges Bank. That, coupled with a faster economic recovery, the firm vaccine rollout and prospects of a solid rebound in the global activity are seen collaborating with the view of a stronger currency in the medium-term. It is worth recalling that the Norges Bank is predicted to be one of the first central banks to hike rates in the DM space.
EUR/NOK significant levels
As of writing the cross is up 0.19% at 10.0098 and faces the next resistance at 10.0694 (50-day SMA) seconded by 10.2749 (weekly high Mar.24) and then 10.4826 (monthly high Feb.26). On the other hand, a breach of 9.9116 (2021 low Apr.29) would expose 9.8163 (2020 low Jan.2) and finally 9.5552 (2019 low Apr.22).
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.