FxWirePro: Norwegian Krone eases as oil slumps on rising U.S. stockpiles
The Norwegian Krone nudged lower, having retreated from a near 7-week peak in the previous session following a plunge in the oil prices due to growing stockplies. Crude oil prices declined, hovering towards their lowest …
The Norwegian Krone nudged lower, having retreated from a near 7-week peak in the previous session following a plunge in the oil prices due to growing stockplies.
Crude oil prices declined, hovering towards their lowest level since June recorded in the prior session after data showed U.S. crude stockpiles unexpectedly rose last week, stoking concerns about a sluggish recovery in fuel demand.
Data from the American Petroleum Institute showed U.S. crude stockpiles rose by 3 million barrels in the week to September 4, compared with analysts' forecast of a draw of 1.4 million barrels.
International benchmark Brent crude was trading 0.9 percent down at $40.26 per barrel by 0950 GMT, having hit a low of $39.34 on Tuesday, its lowest since June 16. U.S. West Texas Intermediate was trading 0.9 percent lower at $37.48 a barrel, after falling as low as $36.15 on Tuesday, its lowest since July 15.
However, weakness in the greenback against a basket of currencies supported the bid tone around the Norwegian currency.
The dollar index slumped, weighed down by the U.S. Federal Reserve's strategy shift to a more tolerant stance on inflation.
USD/NOK trades 0.1 percent higher at 9.0240, having touched a high of 9.1813 the day before, its highest since July 24.
On Wednesday, the pair broke above 55-EMA but retraced to close 1.16 percent down at 9.0147.
Immediate resistance is located at 9.0500, close above could take it till 9.0790.
On the downside, support is around 8.9587 (7-EMA), break below could take it till 8.9373 (20-EMA).
