FxWirePro: Norwegian Krone hovers towards 1-week low as oil plunges
The Norwegian Krone plunged to a 5-day low as the oil prices fell after China omitted 2020 growth target. Crude oil prices declined after China failed to set an economic growth target for 2020, stoking concerns about the…
The Norwegian Krone plunged to a 5-day low as the oil prices fell after China omitted 2020 growth target.
Crude oil prices declined after China failed to set an economic growth target for 2020, stoking concerns about the fallout from the coronavirus pandemic.
International benchmark Brent crude was trading 5.3 percent lower at $34.07 per barrel by 1050 GMT, having hit a high of $36.96 on Thursday, its highest since March 11. U.S. West Texas Intermediate was trading 6.7 percent down at $31.58 a barrel, after rising as high as $34.64 on Friday, its highest since March 11.
Moreover, greenback's extended rebound against a basket of currencies further dented the bid tone around the Norwegian currency.
USD/NOK trades 1.3 percent up at 10.0546, having touched a low of 9.8784 the day before, its lowest March 12.
On Thursday, the pair plunged to a 2-1/2 month trough but retraced to close 0.3 percent higher at 9.9340.
Immediate resistance is located at 10.1211, close above could take it till 10.1482 (55-EMA).
On the downside, support is around 9.8999 break below could take it till 9.8774.
