FxWirePro: Norwegian Krone near 7-month peak as crude oil rallies on U.S. stocks draw
The Norwegian Krone rallied to a fresh 7-month peak as oil prices surged on a decline in U.S. inventories. Crude oil prices surged, extending previous session gains after U.S. government data showed a fall in inventories…
The Norwegian Krone rallied to a fresh 7-month peak as oil prices surged on a decline in U.S. inventories.
Crude oil prices surged, extending previous session gains after U.S. government data showed a fall in inventories, supporting the view that fuel demand is returning despite the coronavirus pandemic.
U.S. crude oil, gasoline and distillate inventories fell last week as refiners ramped up production and demand improved, while crude output fell to 10.7 million barrels per day (bpd) from 11 million bpd.
International benchmark Brent crude was trading 0.1 percent up at $45.35 per barrel by 1128 GMT, having hit a high of $45.76 on Tuesday, its highest since August 5. U.S. West Texas Intermediate was trading 0.1 percent higher at $42.57 a barrel, after rising as high as $42.92 on Tuesday, its highest since August 5.
Moreover, weakness in the the dollar index further boosted the bid tone around the Norwegian currency.
Markets seem to have ignored Norways soft economic data, showing consumer confidence indicator decreased to -6.6 in the third quarter of 2020, the lowest reading since the second quarter of 2016.
USD/NOK trades 0.5 percent lower at 8.8910, having touched a low of 8.8798 earlier, its lowest since mid Janunary.
Immediate resistance is located at 8.9586, close above could take it till 8.9934 (5-DMA).
On the downside, support is around 8.8700, break below could take it till 8.8454.
