FxWirePro: Norwegian Krone eases as economy takes hit from coronavirus outbreak
The Norwegian Krone consolidated within narrow ranges after rebounding from a near 1-month trough in the prior session. The Norwegian currency attempted a minor recovery in the prior session after the crude oil prices bo…
The Norwegian Krone consolidated within narrow ranges after rebounding from a near 1-month trough in the prior session.
The Norwegian currency attempted a minor recovery in the prior session after the crude oil prices bounced back from recent lows, supported by rising tensions in the Middle East and output cuts by producing nations.
However, the Norwegian Krone is likely to weaken further as Norway economy took a huge hit from coronavirus outbreak.
The Norwegian economy contracted 1.9 percent in the first quarter, the biggest drop since the 2008 financial crisis, and is expected to shrink even more in the second quarter.
USD/NOK trades 0.1 percent up at 10.6400, having touched a high of 10.8059 on Thursday, its highest March 25.
Immediate resistance is located at 10.7572, and close above could take it till 10.8198.
On the downside, support is around 10.5715, break below could take it till 10.5455 (Fib 32.8%).
