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EUR/NOK bounces off lows near 9.5700

The Norwegian krone is sharply higher vs. the European currency on Wednesday, with EUR/NOK now rebounding to the 9.6100 area.

EUR/NOK weaker post-CPI

The cross has accelerated its downside pressure after consumer prices in the Nordic economy have surprised markets to the upside, rising at an annual pace of 3.0% during January vs. 2.5% initially forecasted. The higher CPI was sustained by increases in electricity prices and clothing, while fuel prices and food have run the opposite direction.

The print gave extra legs to NOK in light of the critical Norges Bank meeting in March, where market consensus remains pretty divided on the potential decicion.

EUR/NOK significant levels

As of writing the cross is retreating 0.89% at 0.6953 facing the next support at 9.5449 (20-day sma) followed by 9.4949 (38.2% Fibo of 0.0814-9.7511) and then 9.3667 (low Jan.29). On the other hand, a breakout of 9.7199 (high Feb.9) would expose 9.7511 (high Jan.21).

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