EUR/NOK drops to lows near 8.89 post-GDP

The Norwegian Krone gathered extra traction vs. its European peer on Thursday, now taking EUR/NOK to daily lows in the 8.89 neighbourhood.

EUR/NOK weaker on data

NOK intensified its appreciation today after GDP figures showed the Nordic economy has expanded 1.1% inter-quarter during the October-December period of 2016, reverting two consecutive negative readings (-0.6% and -0.1%). Further data showed Mainland GDP expanding 0.3% QoQ.

According to Statistics Norway, “Value added in the petroleum sector increased by 4.6 per cent in 4th quarter after declining in the previous two quarters. This contributed to the total GDP increasing by 1.1 per cent in this quarter. For the year 2016, GDP rose overall by 1 per cent”.

The cross is now trading in the negative territory after three consecutive advances, including fresh lows in the 8.8250 area, levels last seen in May 2015. NOK remains strong and backed by solid fundamentals along with a steady stance from the Norges Bank, which is seen keeping its status quo unchanged in the next months.

EUR/NOK significant levels

As of writing the cross is losing 0.03% at 8.8949 and a break below 8.8644 (low Feb.8) would open the door to 8.8429 (low Feb.7) and finally 8.8256 (2017 low Feb.6). On the other hand, the next hurdle lines up at 8.9035 (high Feb.8) followed by 8.9203 (high Feb.1) and then 8.9423 (20-day sma).