EUR/NOK in 4-day lows post-CPI, near 9.6000

• NOK appreciated further on the release of Norwegian CPI.
• Consumer prices rose 2.2% on a year to February, beating consensus.
• The cross approached the 9.60 hande. Norges Bank meets next week.

The Norwegian Krone is now gathering further traction at the end of the week, dragging EUR/NOK to test the area of 4-day lows in the vicinity of the critical 9.6000 handle.

EUR/NOK lower on CPI results

NOK gained extra buying pressure after inflation figures in the Nordic economy showed consumer prices rose at an annualized 2.2% in a year to February, surpassing estimates and up from January’s 1.6%. In addition, prices rose 0.9% on a monthly basis.

Further data saw Producer Prices up 4.7% YoY during last month, Core CPI YTD gaining 1.4% and Core Inflation at 0.8% on a yearly basis.

In the meantime, the cross is losing ground for the second consecutive session and is extending the leg lower sparked after YTD tops above 9.8800 seen in early February. The next risk event facing NOK will be the Norges Bank meeting due next week, although NOK remains well supported by solid fundamentals in the Scandinavian economy and positive prospects for crude oil.

EUR/NOK significant levels

As of writing the cross is losing 0.32% at 9.6215 and a breakdown of 9.5452 (low Mar.2) would open the door to 9.5295 (200-day sma) and then 9.5252 (2018 low Jan.29). On the upside, the next hurdle emerges at 9.6752 (55-day sma) seconded by 9.7292 (high Mar.8) and finally 9.8812 (2018 high Feb.9).