April 10, OctaFX – EURNOK price tumbles to drop to the vicinity of the 9.5800 area as the Norwegian Krone appreciates to fresh 2019 highs vs. its European peer today.
EURNOK weaker post-CPI data
The buying interest around NOK picked up pace today after inflation figures in the Scandinavian economy surprised to the upside, showing consumer prices rising 2.9% on a year to March. Higher prices in Education, Restaurants and Hotels and Transport collaborated the most with the CPI rise.
Additional data saw Core inflation rising 0.3% inter-month and Core CPI YTD advancing 2.7%. Furthermore, Producer Prices rose 5.2% from a year earlier.
What to look for around NOK
The mood around the risk complex, Brent-dynamics, and solid fundamentals continue to be the main drivers for the Norwegian currency for the time being. In the broader picture, fundamentals in the Nordic economy remain strong and the Norges Bank is expected to hike rates once again at the June meeting.
This view has been reinforced by the recent auspicious results from the latest Regional Network Survey, which stressed the growth outlook for the economy remains strong.
EURNOK technical outlook
As of writing the cross is retreating 0.38% at 9.5951 and a break below 9.5845 (2019 low Apr.10) would aim for 9.5533 (78.6% Fibo of the October-December rally) and finally 9.5027 (monthly low Nov.8 2018). On the upside, the next hurdle emerges at 9.6486 (200-day SMA) followed by 9.6687 (high Apr.5) and then 9.7070 (55-day SMA).
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