EUR/NOK retreats from 10.00 and above, back around 9.9200
- The Norwegian currency looks to stabilize above 9.90.
- The cross comes down after clinching 2018 tops beyond 10.00.
- Norway’s manufacturing PMI drops to 55.9 in December.
After climbing beyond 10.00 the figure and clinching fresh 2018 tops, EUR/NOK has recently come under some selling pressure and is now orbiting around the 9.9200 region.
EUR/NOK looks to Brent, Norges Bank
The cross has started the new year on a positive footing, trading in the 9.9200 region after moving beyond the psychological 10.00 hurdle in the last sessions of 2018, recording at the same time fresh yearly highs.
The sell off in crude oil markets sent the barrel of European reference Brent to as low as the boundaries of the $50.00 mark in late December, dragging NOK as well to fresh lows vs. the single currency, just to rebound somewhat in subsequent sessions.
Today’s calendar in the Nordic economy showed the manufacturing PMI eased a tad to 55.9 in December from 56.2 recorded in the previous month.
What to look for around NOK?
Price action around the Norwegian Krone keeps looking to crude oil dynamics and broad risk appetite trends in the near term horizon. In the meantime, the Scandinavian economy remains healthy and it continues to add to the case of higher rates by the Norges Bank. It is worth noting that the NB is expected to hike twice this year. In addition, the central bank is expected to resume its purchases of NOK, underpinning the expected appreciation in the currency
EUR/NOK significant levels
As of writing the cross is gaining 0.18% at 9.9202 facing the next up barrier at 9.9536 (10-day SMA) seconded by 10.0619 (2018 high Dec.27) and finally 10.1750 (monthly high Dec.2008). On the flip side, a breach of 9.8495 (21-day SMA) would expose 9.7610 (low Jan.1) and then 9.6973 (55-day SMA).