FXStreet (Edinburgh) – The Norwegian krone remains on the defensive so far, with EUR/NOK trading in the upper bound of the recent range for the time being.
EUR/NOK stronger on oil slump
The persistent decline in crude oil prices continue to undermine any attempt of recovery in the Nordic currency, collaborating at the same time with already rising speculations on the possibility of a rate cut by the Norges Bank at its meeting on March 17.
The likeliness of further easing by the Norges Bank has been sustained so far by the inability of the non-oil sector to pick up pace and help covering the output gap existing in the oil-related industry.
EUR/NOK levels to consider
As of writing the cross is gaining 0.60% at 9.6706 facing the next hurdle at 9.7143 (high Jan.18) ahead of 9.7277 (high Jan.7) and then 9.7474 (high Jan.12). On the other hand, a drop below 9.4933 (38.2% Fibo of 9.0832-9.7474) would open the door to 9.4436 (55-day sma) and finally 9.3800 (100-day sma).
(Market News Provided by FXstreet)