After bottoming out in the mid-8.8300s in early trade, EUR/NOK has now reverted that drop and is testing fresh daily highs in the 8.8600 neighbourhood.
EUR/NOK stronger post-data
NOK has quickly lost ground after Norwegian Industrial Production has contracted more than expected 2.7% on a monthly basis in December. Over the last twelve months, Industrial Production has contracted 1.4%. Further data saw Manufacturing Production dropping an annualized 2.0%.
Despite today’s results, Norwegian Industrial Production rose at a solid 3.8% QoQ in the October-December period, which should be positive for the upcoming GDP figures.
Later in the week, NOK will remain in centre stage as Q4 GDP figures are next on tap on Thursday ahead of inflation figures for the month of January on Friday.
In the meantime, the cross continues to navigate levels last seen in July 2015 below the 9.000 handle, all amidst a constructive prospect for the Krone backed in turn by solid fundamentals and a pick up in the price for the barrel of Brent.
EUR/NOK significant levels
As of writing the cross is up 0.07% at 8.8605 and a break above 8.8861 (high Feb.3) would expose 8.9203 (high Feb.1) and then 8.9670 (20-day sma). On the other hand, the next support lines up at 8.8277 (2017 low Feb.3) followed by 8.8167 (low Jul.16 2015) and finally 8.6405 (low Jun.18 2015).
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