EUR/NOK sinks to 2016 lows around 9.06

The Norwegian Krone remains firm so far this week, now sending EUR/NOK to the lower end of the YTD range near the 9.08 neighbourhood.

EUR/NOK lower on oil gains

The ongoing recovery of crude oil prices has lifted the barrel of Brent crude back above the $47.00 mark today, giving extra wings to NOK and thus supporting the daily descent.

NOK has abruptly re-gained buying interest following the steady stance from the Norges Bank at its meeting last week, leaving the key rate unchanged at 0.50%.

In addition, strong fundamentals in the Nordic economy and positive prospects from the latest NB’s Regional Survey keep adding extra strength to the Krone.

In the data space, Norwegian Retail Sales have expanded 0.4% during August, missing forecast albeit reverting July’s 0.6% contraction.

EUR/NOK significant levels

As of writing the cross is retreating 0.37% at 9.0678 facing the next support at 8.8167 (low Jul.16 2015) followed by 8.6021 (low Jun.29 2015) and finally 8.3015 (low May 7 2015). On the other hand, a break above 9.1501 (high Sep.26) would open the door to 9.2193 (20-day sma) and then 9.3044 (high Sep.14).