EUR/NOK tests highs post-data

FXStreet (Edinburgh) - The Norwegian krone is now accelerating its intraday decline vs. the euro, sending EUR/NOK to the area of session highs around 8.6700.

EUR/NOK stronger post-CPI

The pair saw its buying interest intensified after consumer prices in Norway disappointing expectations for the month of February, advancing 1.9% on a yearly basis and 0.4% inter-month, vs. 2.1% and 0.7% forecasted, respectively. Core prices rose 0.5% MoM (vs. 0.6% expected) and 2.4% over the last twelve months, vs. 2.5% previously estimated.

In the view of analysts at Danske Bank, “we think that inflation is less important in relation to the central bank’s decision whether to cut interest rates. We still look for a 25bp rate cut in March, which temporarily could weigh further on the NOK”.

EUR/NOK important levels

The cross is now advancing 0.18% at 8.6248 with the next resistance at 8.6622 (high Mar.10) ahead of 8.6841 (high Feb.5) and then 8.7144 (100-d MA). On the flip side, a breach of 8.5102 (low Mar.6) would open the door to 8.4875 (200-d MA) and finally 8.4000 (low Nov.21).

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