FxWirePro: Norwegian Krone rallies as crude oil rises on bigger-than-expected drop in U.S. crude stocks
The Norwegian Krone rose, extending previous session gains as oil prices surged, while the greenback weakened against a basket of currencies. Crude oil prices surged, reversing some of its previous session losses after a…
The Norwegian Krone rose, extending previous session gains as oil prices surged, while the greenback weakened against a basket of currencies.
Crude oil prices surged, reversing some of its previous session losses after an industry report showed that U.S. inventories of crude fell more than expected.
On Tuesday, the American Petroleum Institute said that crude stocks fell by 4 million barrels last week, more than analysts’ expectations of a 2.9 million-barrel draw.
International benchmark Brent crude was trading 1.4 percent up at $45.12 per barrel by 1149 GMT, having hit a high of $45.76 on Tuesday, its highest since August 5. U.S. West Texas Intermediate was trading 1.4 percent higher at $42.22 a barrel, after rising as high as $42.92 on Tuesday, its highest since August 5.
The dollar index declined on growing uncertainty over whether the U.S. lawmakers would agree on an additional fiscal stimulus to support an economy still struggling with the novel coronavirus.
USD/NOK trades 0.3 percent lower at 8.9717, having touched a low of 8.9012 on Thursday, its lowest since Janunary.
The pair rose earlier in the day but struggled to break above 9.0500.
Immediate resistance is located at 9.0790, close above could take it till 9.0910
On the downside, support is around 8.9306, break below could take it till 8.9180.
