EUR/NOK advanced to highs near 9.1000

The Norwegian Krone met increasing selling pressure on Tuesday, with EUR/NOK advancing to fresh tops near 9.1000 the figure.

EURNOK higher post-CPI

The cross is challenging 2-week peaks near the key barrier at 9.1000 after Norwegian inflation figures tracked by the CPI have missed expectations during December.

In fact, consumer prices have contracted 0.5% inter-month, down from November’s 0.2% gain. Over the last twelve months, the CPI rose 3.5% vs. 3.8% initially forecasted, mainly backed by electricity prices.

Further data saw the Core CPI YTD rising less than expected 2.5% while Producer Prices rose at an annualized 7.2%.

In the meantime, the cross is advancing for the second straight session so far, up from last week’s support in the 8.9600 region, with the next resistance area around December’s tops near 9.1220.

Looking ahead and in the longer term, NOK remains well supported by domestic fundamentals and Brent-dynamics, as well as a steady stance from the Norges Bank.

EUR/NOK significant levels

As of writing the cross is up 0.54% at 9.0770 and a break above 9.1232 (high Dec.23) would expose 9.1349 (high Nov.18) and then 9.1638 (high Nov.11). On the other hand, the next support lines up at 8.9648 (low Jan.6) followed by 8.9392 (low Dec.8) and finally 8.9094 (low Dec.5).