EUR/NOK settles above 5 1/2-week low, posts weekly loss

The EUR/NOK currency pair settled above recent low of 11.5420, its weakest level since April 4th, after the release of the latest GDP growth data out of both the Euro Area and Norway.

The Norwegian economy contracted 0.1% quarter-on-quarter in Q1 of 2025, after a revised down 0.9% decline in the preceding quarter.

The GDP contraction was primarily due to continued decline in petroleum activities and ocean transport as well as a steep drop in fixed investment.

Norway’s mainland GDP, which does not include the petroleum-based offshore segment, grew 1% quarter-on-quarter in Q1 of 2025, while exceeding market consensus of 0.6% and rebounding from a 0.4% drop in the prior quarter.

It has marked the strongest growth rate since the second quarter of 2022, supported by high electricity output due to unusually full water reservoirs.

At the same time, the Euro Area’s economy registered a 0.3% quarterly growth in the first quarter of 2025, according to Eurostat’s second estimate released on Thursday. The revised figure fell short of the earlier estimate of 0.4%.

However, in annual terms, the bloc’s GDP grew 1.2% in Q1, in line with both the preliminary report and market expectations.

Employment levels within the bloc also inched higher, with the Eurozone Employment Change posting a 0.3% quarterly rise and a 0.8% YoY increase in Q1.

The EUR/NOK currency pair settled 0.36% lower at 11.5811 on Friday.

The exotic Forex pair lost 0.65% for the week.