FxWirePro: Norwegian Krone rallies as oil workers strike could knock out a quarter of oil
Thursday, October 8, 2020 11:20 AM UTC
- The Norwegian Krone rose, extending previous session gains, boosted by s surge in oil prices and a slump in the greenback.
- Crude oil prices surged as a strike by Norwegian oil workers could knock out almost a quarter of the country’s petroleum production by Oct. 14, operators say, raising the prospect of further price rises on the international oil market.
- International benchmark Brent crude was trading 1.4 percent up at $42.72 per barrel by 1111 GMT, having hit a high of $42.81 on Tuesday, its highest since September 21. U.S. West Texas Intermediate was trading 1.5 percent higher at $40.60 a barrel, after rising as high as $40.83 on Tuesday, its highest since September 21.
- The dollar index declined as investors await U.S. employment data due later in the day. Jobless claims is expected to decline, however, continued claims are likely to remain above 10 million.
- USD/NOK trades 0.1 percent lower at 9.2801, having touched a low of 9.1788 on Tuesday, its lowest since September 21.
- On Wednesday, the pair rose to a high of 9.3779 but retraced to close nearly 0.7 percent lower at 9.2914.
- The pair fell to a low of 9.2593 earlier in the day but found strong support at 20-EMA.
- Immediate resistance is located at 9.3280, close above could take it till 9.3482.
- On the downside, support is around 9.2402, break below could take it till 9.2262.