11 Feb 2015
EUR/NOK drops to fresh lows post-data
FXStreet (Edinburgh) - The Norwegian krone is now quickly appreciating vs. its European peer, dragging EUR/NOK to test intraday lows in the 8.5300 area.
EUR/NOK softer on GDP release
The pair fell to sub-8.5400 levels after the Nordic economy expanded beyond estimates during Q4, 0.9% inter-quarter and 3.2% on a yearly basis vs. 0.3% and 1.8% initially forecasted, respectively. The numbers bode well in light of the next Norges Bank meeting in March, where market chatter is still considering the likeliness of a rate cut.
In the view of Jens Pedersen, Senior Analyst at Danske Bank, “Since these are backward-looking data, the market reaction will probably be moderate but the market will likely be surprised once again by the resilience of the Norwegian economy”.
EUR/NOK relevant levels
At the moment the cross is losing 0.02% at 8.5770 with the immediate support at 8.5337 (low Feb.11) ahead of 8.4465 (200-d MA) and then 8.4000 (low Nov.21). On the upside, a break above 8.6467 (100-d MA) would expose 8.6820 (10-d MA) and finally 8.6841 (high Feb.5).
EUR/NOK softer on GDP release
The pair fell to sub-8.5400 levels after the Nordic economy expanded beyond estimates during Q4, 0.9% inter-quarter and 3.2% on a yearly basis vs. 0.3% and 1.8% initially forecasted, respectively. The numbers bode well in light of the next Norges Bank meeting in March, where market chatter is still considering the likeliness of a rate cut.
In the view of Jens Pedersen, Senior Analyst at Danske Bank, “Since these are backward-looking data, the market reaction will probably be moderate but the market will likely be surprised once again by the resilience of the Norwegian economy”.
EUR/NOK relevant levels
At the moment the cross is losing 0.02% at 8.5770 with the immediate support at 8.5337 (low Feb.11) ahead of 8.4465 (200-d MA) and then 8.4000 (low Nov.21). On the upside, a break above 8.6467 (100-d MA) would expose 8.6820 (10-d MA) and finally 8.6841 (high Feb.5).