FxWirePro: Norwegian Krone hits 3-1/2 week high as crude oil rallies on tighter supplies
Monday, July 6, 2020 10:56 AM UTC
- The Norwegian Krone rallied to a 3-1/2 week peak as crude oil price surged on tighter supplies, while the greenback slumped.
- OPEC and allies including Russia have pledged to slash production by a record 9.7 million barrels per day (bpd) for a third month in July, while the number of operating U.S. oil and natural gas rigs fell to an all-time low for a ninth week.
- International benchmark Brent crude was trading 1.3 percent up at $43.30 per barrel by 0948 GMT, having hit a high of $43.68 earlier, its highest since June 23. U.S. West Texas Intermediate was trading 1.1 percent higher at $40.67 a barrel, after rising as high as $41.06 earlier, its highest since June 23.
- USD/NOK trades 0.4 percent lower at 9.4178, having touched a low of 9.3841 earlier, its lowest June 11.
- The pair attempted a minor recovery earlier in the day but found strong resistance at 200-DMA.
- Immediate resistance is located at 9.5304 (200-DMA), close above could take it till 9.5755.
- On the downside, support is around 9.3685, break below could take it till 9.3401.