EUR/NOK retreats from 2017 highs, back below 9.50

The Norwegian Krone is now gathering some traction and is dragging EUR/NOK to sub-9.5000 levels after reaching fresh 2017 highs earlier in the session.

EUR/NOK focus on oil

The cross is retreating for the first time after five consecutive daily advances today, returning to sub-9.5000 levels after probing the 9.5800 neighbourhood, levels last traded in late June 2016.

The persistent weakness around crude oil prices have been weighing on NOK in recent weeks, which has depreciated from the mid-9.0700s in April to today’s 11-month lows near 9.5800 the figure. In the same period, the barrel of Brent crude dropped almost 18%, from April’s peak near $56.70 to the $46.60 region seen earlier today.

Recall that the Norges Bank left unchanged its benchmark rate at 0.50% at yesterday’s meeting, with little-to-none impact on the Krone.

EUR/NOK significant levels

As of writing the cross is losing 0.33% at 9.4991 facing the next support at 9.4785 (low May 5) followed by 9.2913 (low Apr.28) and finally 9.2725 (20-day sma). On the other hand, a surpass of 9.5778 (2017 high May 5) would aim for 9.5794 (high Jun.24 2016) and then 9.6199 (high Feb.24 2016).