EURNOK definition

EUR/NOK quotes the euro in Norwegian kroner, showing how many kroner one euro will buy. It is the primary way to trade the krone, more liquid than USD/NOK, though as a cross it still sees wider spreads and sharper moves than the main majors. It is not referred to by any nickname.

The euro is the base currency and the krone the quote currency, so a quote of 11.6000 means one euro is worth 11.6000 kroner. A rising price means the euro is strengthening against the krone; a falling price means the krone is gaining. You trade EUR/NOK as a forex CFD, taking a position on the price rather than buying kroner outright: go long if you expect the euro to rise, short if you expect it to fall. Despite the larger figure, pips are still counted at the fourth decimal place, and your profit or loss is the pips moved multiplied by your position size.

What moves EUR/NOK most is the price of crude oil, since Norway is a major energy exporter and the krone tends to firm when oil rallies and soften when it slides. The policy split between the European Central Bank and Norges Bank adds to the picture, and because the krone is a smaller, less liquid currency it can move sharply when risk sentiment shifts.