FxWirePro: Norwegian Krone tumbles near 1-week trough as oil plunges on demand worries
The Norwegian Krone plunged to a near 1-week trough, weighed down by downbeat economic data and a slump in oil prices Norway's annual house prices index eased to 4.3 percent in August from 5.0 percent in July, below fore…
The Norwegian Krone plunged to a near 1-week trough, weighed down by downbeat economic data and a slump in oil prices
Norway's annual house prices index eased to 4.3 percent in August from 5.0 percent in July, below forecast of 5.1 percent.
Crude oil prices declined to a fresh 1-month low after U.S. data showed gasoline demand fell and recovery from the COVID-19 pandemic was lagging.
U.S. gasoline demand last week fell to 8.78 million barrels per day (bpd) from 9.16 million bpd a week earlier.
Data showing U.S. private employers hired fewer workers than expected for a second straight month in August also stoked fears that economic recovery was lagging.
International benchmark Brent crude was trading 1.6 percent down at $43.70 per barrel by 0910 GMT, having hit a low of $43.56 earlier, its lowest since August 4. U.S. West Texas Intermediate was trading 1.8 percent lower at $40.83 a barrel, after falling as low as $40.77 earlier, its lowest since August 4.
Moreover, strength in the greenback further dented the bid tone around the Norwegian currency.
The dollar index rose to a near 1-week peak after the Federal Reserve highlighted that U.S. business activity and employment gained momentum through late August.
USD/NOK trades 0.6 percent higher at 8.8820, having touched a high of 8.9214 earlier, its highest since August 28.
Immediate resistance is located at 8.9406 close above could take it till 8.9610 (20-EMA).
On the downside, support is around 8.7953 (5-DMA), break below could take it till 8.7772.
