12 Jan 2015
EUR/NOK hits 5-day high as oil continues to fall
FXStreet (Córdoba) - EUR/NOK climbed to a 5-day high on Monday as fresh multi-year lows in oil prices weighed on the Norwegian krone.
The euro-krone pair extended gains into a second day and reached a high of 9.1860 at the beginning of the New York session as crude oil fell to a fresh low of $45.88, last seen April 2009. However, EUR/NOK eased from highs and it is currently trading at 9.1275, still up 0.62% on the day.
As for USD/NOK, the dollar also reached a 5-day peak of 7.7627 and it was last up 0.59% at the 7.7190 area.
NOK short-term outlook
“In the weeks ahead the outlook for oil prices will have a strong bearing on the value of the NOK. While further weakness in oil could push USD/NOK higher, gains could be tempered by expectations regarding Fed policy. Since we do not expect the Fed to hike rates until late in 2015, we see scope for some choppy trading in the USD crosses and this could reinforce resistance at the recent high of USD/NOK 7.87”, said Jane Foley, analyst at Rabobank. “We see risk that EUR/NOK will trade in a choppy range around 9.15 in the coming months, with the 9.00 area offering strong support”.
The euro-krone pair extended gains into a second day and reached a high of 9.1860 at the beginning of the New York session as crude oil fell to a fresh low of $45.88, last seen April 2009. However, EUR/NOK eased from highs and it is currently trading at 9.1275, still up 0.62% on the day.
As for USD/NOK, the dollar also reached a 5-day peak of 7.7627 and it was last up 0.59% at the 7.7190 area.
NOK short-term outlook
“In the weeks ahead the outlook for oil prices will have a strong bearing on the value of the NOK. While further weakness in oil could push USD/NOK higher, gains could be tempered by expectations regarding Fed policy. Since we do not expect the Fed to hike rates until late in 2015, we see scope for some choppy trading in the USD crosses and this could reinforce resistance at the recent high of USD/NOK 7.87”, said Jane Foley, analyst at Rabobank. “We see risk that EUR/NOK will trade in a choppy range around 9.15 in the coming months, with the 9.00 area offering strong support”.