- EUR/NOK moves to 2-day highs around 10.2500 on Wednesday.
- The barrel of Brent crude reaches new tops around $64.00.
- Norway’s total investment in oil and gas activity in 2021 seen higher.
The Norwegian krone remains on the defensive and lifts EUR/NOK to the areae of 2-day highs around 10.2500.
EUR/NOK looks to crude oil, risk trends
EUR/NOK is advancing for the second session in a row on the back of subdued risk appetite mood and the moderate rebound in the greenback.
The krone, in the meantime, seems to ignore the resumption of the uptrend in crude oil prices, with the barrel of the European benchmark Brent crude slightly surpassing the $64.00 mark, clinching at the same time new 2021 highs.
In the docket, Statistics Norway published the quarterly oil investment survey, showing that the total investments in the oil and gas sector are expected to be 4.4% higher for the current year vs. previous estimates at around NOK 173.6 billion. Additionally, the final prints for investments in oil and gas, manufacturing, mining and quarrying and electricity supply contracted 1.9% during 2020 from a year earlier.
What to look for around NOK
NOK eased some of the recent strong advance, although the constructive outlook for the currency remains unchanged for the next months on the back of the positive performance of the Scandinavian economy (despite the pandemic) coupled with higher crude oil prices and the predicted rebound in the global economy. Supporting this view and while the Norges bank remains cautious for the time being, it is expected to be one of the first central banks to hike rates in the medium-term.
EUR/NOK significant levels
As of writing the cross is gaining 0.09% at 10.2144 and faces the next up barrier at 10.3124 (weekly high Feb.12) followed by 10.4235 (55-day SMA) and then 10.5543 (2021 high Jan.28). On the downside, a breach of 10.1503 (2021 low Feb.16) would expose 10.0042 (monthly low Feb.17 2020) and finally 9.8163 (2020 low Jan.2).
Credit: FX Street