- EUR/NOK retreats from 2-week highs above 9.7100.
- NOK loses ground despite Brent approaches the $66.00 mark.
- Norway CPI missed expectations during last month.
The Norwegian Krone is extending its offered bias so far this week and is pushing EUR/NOK to the area of 2-week highs above the 9.7100 mark, just to ease some ground afterwards.
EUR/NOK higher post-CPI
The cross is posting gains since last Friday, managing to reclaim the 9.7100 handle and above after inflation figures tracked by the CPI failed to surprise markets to the upside in June.
In fact, consumer prices in the Scandinavian economy rose 0.1% inter-month and 1.9% from a year earlier. Additional results saw the Core Inflation rising 0.4% MoM and Core CPI YTD up 2.3%. The key CPI-ATE (prices adjusted for tax changes and stripping energy costs) rose 2.3% on a yearly basis, just above the Norges Bank estimate.
It is worth recalling that inflation is expected to remain steady at least until September, while it should pick up pace in the subsequent 12-month view according to the latest report by the Norges Bank. This, plus the solid health of economic fundamentals almost guarantees the continuation of the tight monetary conditions in the Nordic economy.
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 0.14% at 9.7058 and faces the next up barrier at 9.7172 (high Jul.9) seconded by 9.7383 (55-day SMA) and then 9.7526 (38.2% Fibo of the April-May rally). On the other hand, a breach of 9.6934 (200-day SMA) would expose 9.6706 (10-day SMA) and finally 9.6141 (monthly low Jul.4).
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