EUR/NOK sinks to lows on oil recovery, survey

The Norwegian krone is picking up further pace today, relegating EUR/NOK to session lows in sub-9.2600 levels.

EUR/NOK weaker post-survey, oil

NOK remains on a firm fashion in response to the solid demand for crude oil prices, with the barrel of the European benchmark Brent advancing beyond the psychological handle at $50.00.

The current rally in crude oil prices has somewhat offset the results from the Q2 Survey on Investment in oil and gas, manufacturing, mining and electricity supply in Norway, which showed estimates for total investment in the current year are around NOK 216.5 billion, almost 10% lower than figures from last year. Once again, the decline is due to a significant drop in oil and gas.

The survey also showed that the persistent weakness in oil and gas sector has morphed into an expected decline in investment for the next year, around NOK 200.6 billion.

EUR/NOK significant levels

As of writing the cross is retreating 0.28% at 9.2598 facing the next support at 9.1988 (low May 17) followed by 9.1824 (low Apr.27) and then 9.1461 (2016 low Apr.20). On the other hand, a breakout of 9.3090 (20-day sma) would aim for 9.3526 (55-day sma) and finally 9.3941 (high May 4).