FxWirePro: USD/NOK extends losses, finds support at 20-EMA
The Norwegian Krone surged, extending previous session gains, as the crude oil prices gains as storm threatens U.S. Gulf Coast Crude oil prices surged as a tropical storm in the Gulf of Mexico forced rigs to shut down, a…
The Norwegian Krone surged, extending previous session gains, as the crude oil prices gains as storm threatens U.S. Gulf Coast
Crude oil prices surged as a tropical storm in the Gulf of Mexico forced rigs to shut down, although wider concerns about excess supply and falling demand for fuels limited the upside.
On Sunday, tropical storm Sally gained in strength in the Gulf of Mexico west of Florida, disrupting oil production for the second time in less than a month after hurricane Laura swept through the region.
International benchmark Brent crude was trading 0.2 percent up at $39.85 per barrel by 0805 GMT, having hit a low of $39.29 on Tuesday, its lowest since June 16. U.S. West Texas Intermediate was trading 0.3 percent higher at $37.43 a barrel, after falling as low as $36.15 on Tuesday, its lowest since June 15.
Moreover, a plunge in the greenback against a basket of currencies supported the upside in the Norwegian currency.
The dollar index declined on expectations that the U.S. Federal Reserve will adopt a dovish stance at its two-day monetary policy meeting later this week.
USD/NOK trades 0.2 percent lower at 9.0096, having touched a high of 9.1813 Wednesday, its highest since July 24.
Immediate resistance is located at 9.0660, close above could take it till 9.0970.
On the downside, support is around 8.9568 (20-EMA), break below could take it till 8.9409.
