FxWirePro: Norwegian Krone slumps to 1-week trough as crude oil eases on demand worries
The Norwegian Krone declined to a 1-week trough as the crude oil prices fell on renewed demand worries and a bigger than expected rise in U.S. distillate stockpiles. Crude oil prices declined after rising to a 1-week pea…
The Norwegian Krone declined to a 1-week trough as the crude oil prices fell on renewed demand worries and a bigger than expected rise in U.S. distillate stockpiles.
Crude oil prices declined after rising to a 1-week peak in the prior session amid fresh concerns about weak fuel demand after Hurricane Sally passed through the Gulf of Mexico into the southeastern United States.
U.S. Energy Information Administration data showed on Wednesday distillate stockpiles rose by 3.5 million barrels last week, nearly six times more than analysts had expected.
International benchmark Brent crude was trading 0.1 percent down at $42.26 per barrel by 1110 GMT, having hit a high of $42.42 on Wednesday, its highest since September 4. U.S. West Texas Intermediate was trading 0.1 percent lower at $39.40 a barrel, after rising as high as $40.32 the day before, its highest since September 4.
Moreover, a rebound in the greenback against a basket of currencies dented the bid tone around the Norwegian currency.
USD/NOK trades 0.7 percent higher at 9.0692, having touched a low of 8.9737 in the prior session, its lowest since September 10.
The pair broke above key resisatnce 55-EMA earlier in the session to record a 1-week high.
Immediate resistance is located at 9.1524, close above could take it till 9.1771.
On Wednesday, the pair breached minor support at 20-EMA but trimmed losses to close 0.2 percent lower at 9.0106.
On the downside, support is around 8.9735 (20-EMA), break below could take it till 8.9570.
