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EUR/NOK drops to lows post-data

FXStreet (Edinburgh) - The Norwegian krone is now rapidly appreciating vs. the single currency, sending EUR/NOK to test intraday lows in sub-8.5600 levels.

EUR/NOK firmer on CPI

The cross fell further following the inflation figures in the Nordic economy during last month, showing that domestic consumer prices contracted less than estimates 0.1% inter-month (vs. -0.3% exp.) and advanced 2.0% on a yearly basis, vs. 1.9% initially forecasted. Core prices advanced at an annual pace of 2.4% vs. 2.3% expected.

The releases gave extra wings to the krone in light of building speculations regarding a potential rate cut by the Norges Bank in March.

EUR/NOK relevant levels

As of writing the cross is down 0.52% at 8.5685 with the next support at 8.5500 (low Feb.6) ahead of 8.4450 (200-d MA) and finally 8.4000 (low Nov.21). On the other hand, a breakout of 8.6841 (high Feb.5) would target 8.7045 (10-d MA) en route to 8.8760 (high Jan.29).

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