- The Norwegian Krone extends the upside so far today.
- Regional Network Survey came in at 1.46.
- Norges Bank expected to hike rates next week.
The Norwegian currency is extending its upside momentum so far on Tuesday and is forcing EUR/NOK to trade in the area of monthly lows around 9.7300.
EUR/NOK lower on data, focus on NB
NOK gained further traction today following another auspicious print from the Regional Network Survey. In fact, the survey stressed the solid economic growth is expected to continue mainly on the back of ‘increased oil investment, digitalisation and high public investment’.
In addition, the survey reported that capacity utilization and employment remained on the rise.
Today’s data add to higher-than-expected inflation figures for the month of February published on Monday, where consumer prices rose at an annualized 3.0%, all supportive of a higher Krone.
What to look for around NOK
The mood around the risk complex, Brent-dynamics and solid fundamentals continue to be the main drivers for the Norwegian currency for the time being. In the broader picture, fundamentals in the Nordic economy remain strong and the Norges Bank is expected to hike rates at next week’s meeting, all adding to NOK strength. This view has been reinforced by today’s Regional Network Survey, which stressed the growth outlook for the economy remains strong. In addition, the first quarter is usually NOK-positive reinforced by tighter conditions in structural liquidity.
EUR/NOK significant levels
As of writing the cross is losing 0.08% at 9.7325 and a break below 9.7189 (100-day SMA) would aim for 9.7022 (low Feb.27) and finally 9.6289 (200-day SMA). On the other hand, the initial hurdle aligns at 9.7701 (55-day SMA) seconded by 9.8411 (high Feb.11) and then 9.8803 (high Mar.88).
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