EUR/NOK drops to session lows near 9.9500
- EUR/NOK accelerates the downside to 9.9500 area.
- Norway CPI came in above estimates in July.
- Inflation is losing upside momentum, still above Norges Bank target.
The Norwegian Kroner is picking up extra pace today and is now dragging EUR/NOK to fresh three-day lows in the 9.9500 neighbourhood.
EURNOK weaker post-CPI figures
NOK is adding to yesterday’s gains after Norway’s inflation figures tracked by the CPI came in a tad above forecasts for the month of July.
In fact, headline consumer prices rose 0.7% inter-month and 1.9% from a year earlier. In addition, the critical CPI-ATE (prices excluding food, alcohol and tobacco costs) rose at an annualized 2.2%, a tad below the Norges Bank’s target at 2.4%. Further out, Producer Prices contracted 8.6% over the last twelve months.
Also collaborating with today’s upbeat mood around the Kroner, the barrel of European reference Brent crude keeps pushing higher and is trading already above the key $58.00 mark.
The recent correction higher in crude oil plus above-estimates inflation figures are helping the cross to recede further after hitting the boundaries of 10.0908 earlier in the week, the highest level since December 2008.
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 while inflation appears to have lost some upside traction as of late and is running a tad below the NB’s target. That said, the case of further tightening by the Norges Bank in the upcoming months as well as a stronger Krone remains unchanged for the time being.
EUR/NOK significant levels
As of writing the cross is losing 0.37% at 9.9536 and a break below 9.8906 (10-day SMA) would expose 9.7572 (21-day SMA) and finally 9.5834 (monthly low Jul.16). On the upside, the next up barrier is located at 10.0972 (2019 high Aug.7) seconded by 10.1174 (2008 high) and then 1.1100 (psychological level).