FxWirePro: Norwegian Krone hovers towards 2-week peak on upbeat economic data
The Norwegian Krone rose, hovering towards a 2-week peak hit in the prior session following the release of upbeat manufacturing production and industrial production figures. Norway's industrial production increased 8.3 p…
The Norwegian Krone rose, hovering towards a 2-week peak hit in the prior session following the release of upbeat manufacturing production and industrial production figures.
Norway's industrial production increased 8.3 percent year-on-year in August, the most since September 2017, accelerating from a 7.4 percent rise in the previous month. In addition, manufacturing output on annual basis contracted 2.5 percent in August compared to a drop of 6.1 percent in the prior month.
Addtionally, weakness in the greenback against a bakset of currencies further boosted the Norwegian currency.
The dollar index declined as U.S. President Donald Trump’s surprise decision to call off stimulus talks until after the November 3 presidential election heightened downside risks for the U.S. economy.
However, a slump in the oil prices limited the upside in the Norwegian Krone
Crude oil prices plunged on a larger-than-expected increase in U.S. crude inventories.
Data from the American Petroleum Institute showed U.S. oil stockpiles rose by 951,000 barrels last week.
USD/NOK trades 0.6 percent lower at 9.2994, having touched a low of 9.1788 the day before, its lowest since September 21.
On Tuesday, the pair fell below 55-EMA but retraced to close nearly 1.65 percent higher at 9.3564.
Immediate resistance is located at 9.3973, close above could take it till 9.4316.
On the downside, support is around 9.2639, break below could take it till 9.2462 (20-EMA).
