EUR/NOK weaker post-Norges Bank survey

The Norwegian Krone is posting meagre gains vs. its European peer on Tuesday, taking EUR/NOK back to the 9.0000 neighbouhood.

EUR/NOK weaker post-Norges Bank survey

NOK met extra buying interest following the slightly upbeat tone from the Norges Bank’s Regional Network Survey released earlier.

According to the survey, contacts reported some increase in the output over the last three months, adding that growth has gathered some traction during the summer although at a slower pace than initially expected with higher public demand and persistent solid competitiveness contributing to growth.

The survey also showed that oil services remain on the downside, while other sectors have managed to expand.

In addition, contacts expect growth to pick up in the next six months, while firms see higher demand from public sector and the non-oil related private sector. Furthermore, the expected annual growth for the current year is at 2.4% and 2.5% in 2017.

In the meantime, the cross is posting gains for the first week after three consecutive pullbacks, finding strong support in the 8.90 area for the time being and ahead of the Norges Bank meeting due on December 15.

EUR/NOK significant levels

As of writing the cross is losing 0.12% at 9.0013 and a break below 8.9121 (low Oct.20) would expose 8.9094 (low Dec.5) and finally 8.8937 (2016 low Oct.4). On the flip side, the initial resistance lines up at 9.0181 (high Dec.6) ahead of 9.0463 (55-day sma) and then 9.0625 (20-day sma).