EUR/NOK upside capped around 9.4050

The Norwegian Krone has reverted the initial drop and is now prompting EUR/NOK to return to the 9.3700 neighbourhood.

EUR/NOK fades the spike post-CPI

NOK has depreciated towards the mid-9.4000s after inflation figures in the Nordic economy came in below expectations for the month of September. In fact, consumer prices tracked by the CPI rose at a monthly 0.6% and 1.6% over the last twelve months.

Furthermore, Core CPI YTD rose at an annualized 1.0%, while core inflation rose at a monthly 0.5% and producer prices advanced 8.7% YoY. The broader HICP rose 1.6% on a yearly basis.

Despite the initial weakness, NOK managed to revert the initial drop in the wake of inflation figures and regain the ground lost following the solid performance of the barrel of Brent crude.

EUR/NOK significant levels

As of writing the cross is retreating 0.01% at 9.3723 and a breakdown of 9.3382 (low Oct.4) would expose 9.3309 (55-day sma) and then 9.2524 (low Sep.25). On the flip side, the next up barrier lines up at 9.3894 (100-day sma) seconded by 9.4057 (high Oct.10) and finally 9.4304 (high Sep.29).