EUR/NOK plummets to lows, Brent soars

The Norwegian Krone has now gathered further traction following the report by the EIA, dragging EUR/NOK to fresh multi-day lows around 9.3500.

EUR/NOK loses ground on Brent gains

NOK met a wave of buying pressure after the barrel of Brent crude jumped above the critical $50.00 mark following an upbeat report on US supplies by the EIA. In fact, the DoE’s report showed US crude oil inventories dropped the most this year by 5.247 million barrels during the week ended on May 2.

NOK managed to recover ground lost in early trade, after inflation figures in the Nordic economy surprised markets to the downside for the month of April, showing the CPI rising at an annualized 2.2% and 0.2% inter-month, both readings coming in below initial consensus. In addition, Core Inflation rose 0.3% on a monthly basis and Core CPI YTD rose 1.7%.

The cross has so far broken below the sideline theme insinuated since Monday around 9.4500, following the drop from Friday’s fresh 2017 tops near 9.5800.

EUR/NOK significant levels

As of writing the cross is losing 0.80% at 9.3719 facing the next support at 9.3263 (50% Fibo of the April-May rally) followed by 9.3147 (20-day sma) and finally 9.2913 (low Apr.28). On the upside, a breakout of 9.4822 (high May 8) would aim for 9.5778 (2017 high May 5) and then 9.5794 (high Jun.24 2016).