Forex: EUR/NOK bouncing off lows, above 7.3800

A bout of appreciation of the Norwegian krone followed the release of the inflation figures in Norway during January, where the CPI rose 1.3% on a yearly basis, a tad lower than December’s +1.3%. The Core print advanced 1.2% YoY vs. 1.1%. Producer prices contracted sharply during the same period, 2.4%, extending the previous fall of 0.2%.

“We think that EUR/NOK has some downside potential this week after Draghi removed some euro support last week”, commented C.Tuxen, Senior Analyst at Danske Bank.

At the moment, the cross is losing 0.24% at 7.3830 with the next support at 7.3570 (low Jan.14) ahead of 7.3415 (high Jan.4) and finally 7.2953 (Lower Bollinger).
On the upside, a break above 7.4680 (high Feb.1) would clear the path to 7.4770 (2013 high Jan.18) and 7.4846 (high Oct.26 2012).