FxWirePro: Norwegian Krone surges to 2-week peak on upbeat housing data and oil price rally
Monday, October 5, 2020 11:59 AM UTC
- The Norwegian Krone rallied to a 2-week peak following the release of upbeat housing data.
- Norway's house prices rose by 5.8 percent from a year earlier in September, the biggest increase since June 2017, amid low interest rates. On a seasonally adjusted monthly basis, house prices increased by 1.3 percent.
- The Norwegian currency was also supported by a 4 percent rise in oil prices and a decline in the greenback.
- Crude oil prices rose about 4 percent, boosted by comments from doctors for U.S. President Donald Trump suggesting he could be discharged from hospital as soon as Monday.
- International benchmark Brent crude was trading 4.04 percent up at $40.70 per barrel by 1141 GMT, having hit a low of $38.77 on Friday, its lowest since June 15. U.S. West Texas Intermediate was trading 4.5 percent higher at $38.66 a barrel, after falling as low as $36.66 on Friday, its lowest since September 9.
- The dollar index eased as investors awaited clarity on the health of U.S. President Donald Trump after he was tested positive for the coronavirus.
- USD/NOK trades 0.3 percent lower at 9.2580, having touched a low of 9.2423 earlier, its lowest since September 21.
- The pair plunged to a 2-week low earlier in the day but found strong support at 20-EMA.
- Immediate resistance is located at 9.3410, close above could take it till 9.3695.
- On the downside, support is around 9.2377 (20-EMA), break below could take it till 9.2192.