The Norwegian Krone alternates gains with losses on Tuesday vs. its European peer, taking EURNOK to the 9.6200 handles following releases in Norway.
April 9, OctaFX – NOK has briefly depreciated to daily lows in the vicinity of the 9.6500 handle after GDP figures for Mainland Norway came in below estimates.
EURNOK apathetic post-GDP data
In fact, in light of today’s data, the economy expanded 0.6% on a 3-month rolling basis during the December 2018-February 2019 period, down from the 0.9% expansion seen in the November 20180-January 2019 period.
According to Statistics Norway, among the main contributors to the economic expansion in the period were services related to oil production, mining, and manufacturing. On the contrary, the lower production of electricity reduced growth by around 2.0%.
In the meantime, the recent appreciation of NOK comes in line with the rally in the European benchmark Brent crude to levels above the psychological $70 mark per barrel, levels last seen in the first half of November 2018.
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 analysis
As of writing the cross is retreating 0.08% at 9.6164 and a break below 9.6033 (low Apr.3) would aim for 9.5896 (2019 low Mar.21) and finally 9.5533 (78.6% Fibo of the October-December rally). On the upside, the next hurdle emerges at 9.6687 (high Apr.5) seconded by 9.7095 (55-day SMA) and then 9.7468 (high Mar.28).
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