EUR/NOK leaps to highs near 9.78 on CPI, GDP

• Norwegian Core CPI rose less than expected.
• GDP contracted 0.3% QoQ in Q4.
• EUR/NOK rose to 5-week tops.

The Norwegian Krone is sharply lower vs. its European peer at the end of the week, lifting EUR/NOK to fresh multi-week tops in the 9.7800 neighbourhood.

EUR/NOK higher on disappointing data

NOK met a wave of sell orders after GDP figures showed the economy contracted 0.3% inter-quarter during the October-December period vs. a forecasted 0.5% expansion and down from the previous quarter’s 0.8% gain.

Further data from the Nordic economy showed Core CPI missing estimates in January and rising at an annualized 1.1% vs. 1.5% initially estimated and December’s 1.4% gain. In addition, headline consumer prices dropped 0.1% and rose 1.6% YoY, matching consensus. Producer prices rose 10.3% on a yearly basis, up from 7.3% YoY.

In the meantime, the cross is up for the second week in a row, extending the rebound from yearly lows in the 9.5250 area seen in late January.

EUR/NOK significant levels

As of writing the cross is gaining 0.69% at 9.7754 facing the next up barrier at 9.9329 (high Nov.30 2017) seconded by 9.9950 (2018 high Dec.21 2017) and finally 9.9832 (high Dec.24 2008). On the downside, a breakdown of 9.6457 (low Feb.7) would open the door to 9.6305 (21-day sma) and then 9.5252 (2018 low Jan.29).