- EUR/NOK rebounds from fresh multi-week lows.
- Norway Manufacturing Production expanded 0.3% MoM in May.
- US Payrolls seen driving the mood later in the day.
EUR/NOK is posting marginal gains above recent new 3-month lows in the boundaries of the 9.6200 mark.
EUR/NOK looks to data, oil
NOK is extending its upside momentum so far this week, navigating the lowest levels in two months vs. its European peer in response to positive data releases, higher oil prices and the hawkish stance from the Norges Bank.
Earlier in the day, Manufacturing Production in the Scandinavian economy expanded at a monthly 0.3% in May and 5.0% from a year earlier, beating estimates. In addition, turnover in oil and gas, manufacturing, mining and electricity supply expanded 0.2% inter-month and 0.8% vs. May 2018.
Also adding to NOK strength, the European benchmark Brent crude is reversing part of yesterday’s drop and is extending the rebound beyond the $63.00 mark per barrel.
What to look for around NOK
The mood around the risk complex, Brent-dynamics, a healthy economy and a hawkish central bank continue to be the main drivers for the Norwegian currency for the time being. Latest results from the Regional Network Survey showed fundamentals in the Nordic economy remain pretty solid, reinforcing the case of further tightening by the Norges Bank in the upcoming months as well as a stronger Krone.
EUR/NOK significant levels
As of writing the cross is up 0.08% at 9.6300 and faces the next up barrier at 9.6614 (10-day SMA) seconded by 9.6896 (200-day SMA) and then 9.7200 (high Jun.28). On the other hand, a breach of 9.6141 (low Jul.4) would expose 9.5896 (monthly low Mar.26) and finally 9.5530 (2019 low Apr.19).
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