21 Jan 2021 17:46
The EUR/NOK currency pair is a popular one on Forex market. Since Norway has an active trade with the European Union, the experienced traders choose this trading instrument because of high stability and predictability of the eurozone and the Norway's economies. The most intense EUR/NOK bidding is observed during the European session.
This pair is the cross rate against the U.S. dollar. There is no the U.S. dollar in this currency pair, but it extends an enormous influence over both currencies. To make it clear just combine the EUR/USD and USD/NOK charts in the same price chart, and you will get the approximate EUR/NOK chart.
The U.S. dollar affects the euro and the Norwegian krone deeply. So for a better forecast of the future rate movement of this currency pair, you need to keep in mind the main economic indicators of the United States. There are such indicators as the interest rate, GDP, unemployment, new workplaces indicator, and many others. Do not forget that the currencies listed above may react differently to the changes in the U.S. economy.
Norway is one of the world's most advanced countries with developed industry and agriculture. The country's leading positions are ensured the high levels of such indices as quality of life and income per capita. Norway is considered as the third largest producer and exporter of oil and gas. The energy export provides the main part of this Scandinavian country's revenue. The largest industrial sectors of Norway are electrometallurgy, mining, electrical and mechanical engineering. Moreover, the country sells abroad a great amount of its offshore drilling platforms for oil and gas. Norway is also the major supplier of seafood in the world.
If you trade EUR / NOK, you should pay attention not only to the economic indicators of Norway, but also to the world's price movement of oil and other mineral resources needed to support the Norway's economy.
Comparing to the major currency pairs such as EUR/USD, USD/CHF, GBP/USD and USD/JPY, this one is relatively illiquid. So when you make a prognosis of the future pair movement, you should pay special attention to the currency pairs that consist of the euro and the Norwegian krone in tandem with the U.S. dollar.
Remember, the spread for the cross rates can be higher than for the more popular currency pairs. Thus, before you start dealing with cross currency pairs, study carefully the broker's conditions for this specified trade instrument.