FxWirePro: Norwegian Krone rebounds from near 1-week low as oil prices surge
The Norwegian Krone rose, retreating from a near 1-week low hit in the previous session following a rise in the crude oil prices. Crude oil prices surged on expectations that fuel demand will recover as some European and…
The Norwegian Krone rose, retreating from a near 1-week low hit in the previous session following a rise in the crude oil prices.
Crude oil prices surged on expectations that fuel demand will recover as some European and Asian countries along with several U.S. states began to ease coronavirus lockdown measures.
International benchmark Brent crude was trading 4.5 percent higher at $29.22 per barrel by 1131 GMT, having hit a high of $29.42 earlier, its highest since April 15. U.S. West Texas Intermediate was trading 5.01 percent up at $24.67 a barrel, after rising as high as $24.97 earlier in the session, its highest since April 9.
However, the recovery in the Norwegian currency appears fragile as the dollar strengthened after U.S. President Donald Trump stepped up verbal attacks on China ahead of a Nov. 3 presidential election, raising fears of a new trade war.
USD/NOK trades flat at 10.3190, having touched a low of 10.2037 on Thursday, its lowest April 14.
Immediate resistance is located at 10.3960 (21-DMA) and close above could take it till 10.4239.
On the downside, support is around 10.2402, break below could take it till 10.2209.
