EUR/NOK drops to fresh lows

FXStreet (Edinburgh) - The Norwegian krone is now rapidly gathering pace vs., the single currency, dragging EUR/NOK to test lows around 8.8300.

EUR/NOK weaker post-data

The cross saw its earlier gains trimmed after the retail sales in the Nordic economy expanded 0.2% during December, matching November’s print. Further data also showed that the Registered Unemployment ticked higher to 3.1% during January, up from 2.7%. The unemployment have increased to 87.874k from 86.75K.

Analysts at Danske Bank suggested “We now forecast EUR/NOK at 8.75 in 1M (9.25), 9.00 in 3M (9.40), 8.75 in 6M (9.00) and 8.25 in 12M (8.50)”.

EUR/NOK key levels

As of writing the cross is down 0.36% at 0.8323 with the next support at 8.6713 (low Jan.23) followed by 8.6250 (low Dec.4) ahead of 8.6010 (100-d MA). On the flip side, a breakout of 8.8758 (high Jan.29) would expose 8.9026 (high Jan.22) and finally 8.9289 (high Jan.19).

US data today to back up Fed’s upgrade - BTMU

Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ expects the statement from the FOMC that stated the US economy was now expanding at a “solid” pace and that “strong” jobs growth was now in place to likely be confirmed in data to be released from the US today.
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