EUR/NOK and USD/NOK points to the upside – Nordea

The Norwegian krone continued to weaken over the past week, mainly due to lower oil prices. Consolidation is likely the name of the game in the short-term, however, risks remain on the upside in both EUR/NOK and USD/NOK, economists at Nordea report.

NOK weakened during the past week

“Lower oil prices have led to a weaker NOK. Last week’s OPEC+ meeting resulted in an increase in production by 400K barrels/day, in line with the original plan from the cartel. What has likely contributed negatively to the oil price is a weaker demand outlook in China due to the resurgence of covid, and statements from President Biden that oil prices are unacceptably too high.”

“First resistance level for EUR/NOK is at 10.00 and then around 10.15. On the downside, 9.80 and then 9.75 are support levels. 

“For USD/NOK, we have resistance around 8.60/8.70 on the upside, and support around 8.45 on the downside.”

“This week’s calendar is short. Inflation figures in the US and Norway will be released, but their effects on the NOK should be minor.”