EUR/NOK slumps to 5-week lows on CPI

The Norwegian krone has gathered further pace vs. the single currency on Wednesday, taking EUR/NOK to the 9.2500 neighbourhood, or multi-week troughs.

EUR/NOK lower post-data

The cross dropped to 5-week lows after Norwegian inflation figures tracked by the CPI have come in higher than initially estimated during July.

In fact, consumer prices rose 0.6% on a monthly basis and 4.4% over the last twelve months vs. forecasts for a 0.1% drop and a 3.8% gain. The increase in food prices was behind the up move inter-month, while higher electricity prices has driven the increment of the annualized CPI.

Core CPI has followed suit, up 0.7% inter-month and Core CPI YTD rose 3.7% vs. 3.1% expected.

The cross has now practically retraced last month’s upside to the boundaries of the 9.52 handle and could attempt a challenge of June’s lows in the 9.20 area.

EUR/NOK significant levels

As of writing the cross is retreating 0.89% at 9.2616 facing the next support at 9.1924 (low Jun.8) followed by 9.1461 (low Apr.20) and then 9.0832 (low Dec.9 2015). On the other hand, a break above 9.4063 (200-day sma) would open the door to 9.5193 (high Jul.29) and finally 9.5794 (high Jun.24).