FxWirePro: Norwegian Krone near 1-week low as oil eases on demand concerns
The Norwegian Krone declined to a near 1-week low, as crude oil prices plunged on demand concerns. Crude oil prices declined, weighed down by growing concerns that a recovery in fuel demand will be stalled by soaring cor…
The Norwegian Krone declined to a near 1-week low, as crude oil prices plunged on demand concerns.
Crude oil prices declined, weighed down by growing concerns that a recovery in fuel demand will be stalled by soaring coronavirus cases around the world.
On Tuesday, the Organization of the Petroleum Exporting Countries cut its oil demand forecast, citing economic dislocations caused by the virus
International benchmark Brent crude was trading 0.7 percent down at $42.16 per barrel by 1047 GMT, having hit a high of $43.54 on Friday, its highest since September 18. U.S. West Texas Intermediate was trading 0.8 percent lower at $39.85 a barrel, after rising as high as $41.44 on Friday, its highest since September 18.
Moreover, a rebound in the the greenback against a basket of currencies further dented the bid tone around the Norwegian currency.
The dollar index rose as halted COVID-19 vaccine trials and lack of an agreement on additional U.S. fiscal stimulus soured risk appetite.
USD/NOK trades 0.1 percent higher at 9.2357, having touched a high of 9.2734 earlier, its highest since October 8.
Immediate resistance is located at 9.2914, close above could take it till 9.3279.
On the downside, support is around 9.1983 (55-EMA), break below could take it till 9.1788.
