EUR/NOK sidelined post-CPI

The Norwegian krone is gathering pace today, takingEUR/NOK to the area of 9.34, or daily lows.

EUR/NOK lower on CPI

The cross has eroded yesterday’s gains after inflation figures in the Nordic economy showed consumer prices tracked by the CPI rose 0.3% inter-month, mainly due to higher food prices, and 3.2% on a year to April.

The broader HICP also showed prices up 0.3% on a monthly basis and 3.5% on an annualized basis.

In light of the upcoming Norges Bank meeting on June 12, analysts at Danske Bank argued “we expect NB on Thursday to leave rates unchanged and to reiterate its dovish bias from the March meeting. Given the economic outlook, NB’s dovish rate path and the stronger NOK, we still expect a final 25bp rate cut in September”.

EUR/NOK significant levels

As of writing the cross is retreating 0.17% at 9.3468 facing the next support at 9.2825 (20-day sma) followed by 9.1824 (low Apr.27) and then 9.1461 (2016 low Apr.20). On the other hand, a breakout of 9.3852 (200-day sma) would aim for 9.3941 (high May 4) and finally 9.4664 (100-day sma).