EUR/NOK in 2017 tops post-CPI

The Norwegian Krone is extending further its bearish note this week, now lifting EUR/NOK to fresh YTD tops around 9.1250.

EUR/NOK higher on oil rout, data

The cross is advancing for the third session in a row today to levels last seen in mid-December around the 9.1200 handle following the recent poor performance of crude oil and softer-than-expected inflation figures in the Nordic economy during last month.

NOK’s sharp depreciation comes from the recent sell-off in crude oil prices, which has taken the barrel of Brent crude to fresh 2017 lows in the $51.50 area on Thursday.

Furthermore, prices for crude oil seem to have broken below the consolidative theme that has been prevailing since the start of the year following the OPEC/non-OPEC deal to cut the oil output.

Adding to NOK-selling, February’s inflation figures have come in short of expectations earlier today, with the CPI rising at an annualized 2.5% (vs. 2.8% exp.) and 0.4% inter-month (vs. 0.7% exp.). Further data saw Core Inflation rising 0.5% MoM and Core CPI YTD at 1.6%.

The cross remains firm in the meantime, advancing for the second week in a row and recovering the ground lost on Tuesday after auspicious results from the Norges Bank’s Regional Survey.

EUR/NOK significant levels

As of writing the cross is up 0.40% at 9.1127 and a surpass of 9.1229 (2017 high Mar.10) would aim for 9.1257 (200-day sma) and then 9.2574 (high Nov.9). On the other hand, the immediate support aligns at 9.0820 (low Mar.10) followed by 8.9977 (100-day sma) and finally 8.9546 (55-day sma).