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EUR/NOK extends the sideline theme, always below 9.90

  • EUR/NOK keeps the sub-9.90 consolidation unchanged.
  • Norway CPI came in below estimates in December.
  •  Mainland GDP expanded less than expected in November.

EUR/NOK is prolonging the consolidative note that has been prevailing since the start of the new year, always below the 9.90 region and somewhat capped by the 200-day SMA, today at 9.8810.

EUR/NOK unchanged after data

The cross navigates the area of 4-month lows just above the key support at 9.80 the figure on the back of renewed and quite intense selling pressure in the euro and the recent correction lower in crude oil prices.

Indeed, and in spite of the sharp correction lower in the barrel of the Brent crude in past sessions, the krone managed quite well to stay close to recent tops vs. its European peer.

Today, inflation figures tracked by the headline CPI surprised to the downside in December after consumer prices contracted 0.3% inter-month and rose 1.4% from a year earlier. In addition, CPI ATE (inflation adjusted for tax changes and excluding energy costs) rose at an annualized 1.8% (from 2.0%), below the Norges Bank’s target.

The data add to below-forecasts figures from mainland GDP in the Scandinavian economy published on Thursday, which showed the economy expanded ‘just’ 0.1% MoM in November, implying a weaker print for the October-December period.

EUR/NOK significant levels

As of writing the cross is losing 0.02% at 9.8615 and a breach of 9.8154 (2020 low Jan.7) would expose 9.8098 (monthly low Sep.19) and finally 1095834 (monthly low Jul.14). On the upside, the next resistance lines up at 9.8973 (2020 high Jan.8) followed by 9.9273 (21-day SMA) and then 10.0243 (100-day SMA).

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