EUR/NOK Sidelined Post-CPI
The Norwegian krone is gathering pace today, taking EUR/NOK to the area of 9.34, or daily lows.
EUR/NOK lower on CPI
The
cross has eroded yesterday’s gains after inflation figures in the
Nordic economy showed consumer prices tracked by the CPI rose 0.3%
inter-month, mainly due to higher food prices, and 3.2% on a year to
April.
The broader HICP also showed prices up 0.3% on a monthly basis and 3.5% on an annualized basis.
In
light of the upcoming Norges Bank meeting on June 12, analysts at
Danske Bank argued “we expect NB on Thursday to leave rates unchanged
and to reiterate its dovish bias from the March meeting. Given the
economic outlook, NB’s dovish rate path and the stronger NOK, we still
expect a final 25bp rate cut in September”.
EUR/NOK significant levels
As
of writing the cross is retreating 0.17% at 9.3468 facing the next
support at 9.2825 (20-day sma) followed by 9.1824 (low Apr.27) and then
9.1461 (2016 low Apr.20). On the other hand, a breakout of 9.3852
(200-day sma) would aim for 9.3941 (high May 4) and finally 9.4664
(100-day sma).
