EUR/NOK jumps to highs around 8.9600

The Norwegian Krone is trading on the defensive vs. its European peer today, lifting EUR/NOK to fresh daily tops in the 8.9600 neighbourhood.

EUR/NOK stronger on Brent drop

NOK is surrendering part of yesterday’s strong gains following a softer tone in crude oil prices, with the barrel of Brent crude hovering over the $55.60 region for the time being.

NOK is easing some ground after an auspicious Regional Survey by the Norges Bank noted some improvement in the private sector outlook. In addition, the survey unveiled the GDP and capacity utilization are seen growing above the central bank’s projections, emphasizing the view that the Nordic economy could have already left behind the oil shock.

Analyst at Danske Bank assessed the survey, citing “Diminishing downside risks to the economy, combined with upside risks from the housing market will eventually push Norges Bank into a tightening bias. However, we still expect NB to be on hold throughout 2017. In short, a strong report removing most of the downsides and hints of upside risks going forward”.

In the data space, Tuesday’s already mentioned Regional Survey came in at 1.02 from 0.76 and Manufacturing Production rose 0.2% MoM. Ahead in the week, key inflation figures in Norway are due on Friday.

EUR/NOK significant levels

As of writing the cross is up 0.27% at 8.9562 and a surpass of 8.9957 (high Mar.7) would aim for 9.1017 (2017 high Jan.10) and then 9.1274 (200-day sma). On the other hand, the immediate support aligns at 8.9208 (low Mar.7) followed by 8.9000 (low Mar.3) and finally 8.8799 (20-day sma).