If you look at the state of the euro against the Norwegian krone, you can see how Norway has taken advantage of its position. The point is that the country did not feel the pressure factors faced by the EU.
Of course, Norway depends on exports, reduced by the debt crisis in Europe, but it uses many natural resources that provide its wealth for years to come.
The combination of these two factors turned NOK into an excellent alternative to the Swiss franc. Many investors see the currency as a temporary refuge for capital. A regular influx of foreign investments ensures a stable krone rate.
Norway sends more than 60% of its exports to the eurozone, which is why it is linked to the economic health of 19 European countries that use the euro.
The UK is also a good client for Norway, and any problems with the British economy can affect Norwegian exports.
Norway is the fifth-largest oil exporter in the world, and also has a developed fishing, gas, paper and aluminum industry.
The unemployment rate is less than 3%, and social security programs, including health care, are considered among the best in the world. This factor positively affects the country’s economic climate and makes it attractive to international investors.
Revenues from oil and natural gas account for about 20% of GDP and 45% of exports. In 2015, the government created a Fund financed by oil revenues. Its task is to save and increase the funds from which the pension will be paid.
There are no similar analogs in the world. Therefore, this circumstance further enhances the attractiveness of Norway as a place to live. This is important for the economy, as it guarantees a constant influx of labor migrants. So the industry will continue to develop.
The euro is facing the challenges of the current economic downturn. A country with its currency can easily make adjustments to control its economy.
The euro depends on the economy of 19 states at once, so it is difficult for the European Central Bank to regulate the currency. The most significant difficulty in this matter is the fact that the commercial space of the eurozone is developed unevenly. There are countries donors and acceptors.
Traditional methods, such as raising and lowering interest rates, are still used, but they should be based on the average of member countries.
For example, Germany is financially stable, and at the other end of the spectrum, Greece almost defaulted, or, possibly, separated from the euro and returned to drachma, which would have enormous consequences.
However, due to strong Germany and several other countries, the euro can be estimated by their indicators, while the economies of other member countries have a much smaller impact on the currency as a whole.
Of course, it is worth monitoring the fundamental factors that affect the value of the currency, including working statistics, such as the number of unemployed and output, but averaging the figures for all countries that use the euro.
Technical analysis tells us that all the fundamental factors that may be known are already included in current pricing, and therefore, the exchange rate should only respond to changes in numbers.
In any case, it is necessary to use technical analysis to determine the timing of spread rates, as well as when to enter and exit transactions.
In this situation, it is evident that in the EUR/NOK pair, there is no clear dominant. Commodity factors affect the Norwegian krone, and economic factors affect the euro.
Both those and other changes occur quite often, but what needs to be attractive to traders is the power of currencies. Cross EUR/NOK is not distinguished by intense volatility and a significant trading corridor.
This means that transactions have minimal risk and low spread, suitable for beginners or those who trade in significant assets.
|AUD/CAD||Course Australian Dollar to Canadian Dollar||3.8||0.93705|
|AUD/CHF||Course Australian Dollar to Swiss Franc||3.7||0.69379|
|AUD/JPY||Course Australian Dollar to Japanese Yen||29.8||84.684|
|AUD/NZD||Course Australian Dollar to New Zealand Dollar||3.2||1.07597|
|AUD/USD||Course Australian Dollar to US Dollar||2.7||0.77358|
|CAD/CHF||Course Canadian dollar to Swiss franc||3.9||0.74027|
|CAD/JPY||Course Canadian dollar to Japanese yen||3||90.354|
|CHF/JPY||Course Swiss Franc to Japanese Yen||4||122.032|
|EUR/AUD||Course Euro to Australian Dollar||3.3||1.57312|
|EUR/CAD||Course Euro to Canadian Dollar||3.4||1.47433|
|EUR/CHF||Course Euro to Swiss Franc||3||1.09163|
|EUR/DKK||Course Euro to Danish Krone||5.2||7.4362|
|EUR/GBP||Course Euro to British Pound||2.8||0.86018|
|EUR/JPY||Course Euro to Japanese Yen||3.4||133.24|
|EUR/MXN||Course Euro to Mexican Peso||37||23.9815|
|EUR/NOK||Course Euro to Norwegian Krone||40||10.0624|
|EUR/NZD||Course Euro to New Zealand Dollar||7||1.69281|
|EUR/PLN||Course Euro to Polish Zloty||25||4.46158|
|EUR/RUB||Course Euro to Ruble||73.3||87.9629|
|EUR/SEK||Course Euro to Swedish Krona||37||10.0681|
|EUR/TRY||Course Euro to Turkish Lira||12.5||10.4616|
|EUR/USD||Course Euro to US Dollar||2.5||1.21715|
|EUR/ZAR||Course Euro to South African Rand||5.5||16.5153|
|GBP/AUD||Course British Pound to Australian Dollar||5.9||1.82854|
|GBP/CAD||Course British Pound to Canadian Dollar||6.8||1.71367|