- The Norwegian Krone appreciates to the 9.6200 area vs. EUR.
- Norges Bank could hike rates in the summer, Olsen said.
- Norway CPI figures for the month of March due on Wednesday.
The Norwegian Krone is gathering extra pace at the beginning of the week and is now dragging EUR/NOK top fresh lows in the 9.6200 neighbourhood.
EUR/NOK lower on Brent, NB
The cross is testing fresh 3-day lows in the 9.6200 neighbourhood on Monday following the rally in crude oil prices and positive comments from Norges Bank’s Olsen.
In fact, the European benchmark Brent crude keeps inching higher and is now approaching the key $71.00 mark per barrel against the backdrop of an improved sentiment in the risk-associated space.
Also sustaining the upside momentum in NOK, Norges Bank’s Olsen reiterated that the central bank would likely raise rates in the summer. Olsen has also said that capacity utilization keeps expanding while the tighter labour market should morph into further upside pressure in wage growth.
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 once again at the June meeting. This view has been reinforced by the recent auspicious results from the latest Regional Network Survey, which stressed the growth outlook for the economy remains strong.
EUR/NOK significant levels
As of writing the cross is retreating 0.34% at 9.6192 and a break below 9.6033 (low Apr.3) would aim for 9.5896 (low Mar.21) and finally 9.5533 (78.6% Fibo of the October-December rally). On the upside, the next hurdle emerges at 9.6687 (high Apr.5) seconded by 9.7122 (55-day SMA) and then 9.7468 (high Mar.28).
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