FxWirePro: USD/NOK plunges to 1-year low, outlook remains bearish
The Norwegian Krone advanced to an over 1-year peak as crude oil prices rose on stimulus support. Crude oil prices surged as global stimulus measures underpinned prices even as demand struggles to return to pre-COVID lev…
The Norwegian Krone advanced to an over 1-year peak as crude oil prices rose on stimulus support.
Crude oil prices surged as global stimulus measures underpinned prices even as demand struggles to return to pre-COVID levels in a well supplied market.
International benchmark Brent crude was trading 1.3 percent up at $46.48 per barrel by 1015 GMT, having hit a high of $46.50 earlier, its highest since March 6. U.S. West Texas Intermediate was trading 1.4 percent up at $43.51 a barrel, after rising as high as $43.75 on Wednesday, its highest since March 6.
Moreover, weakness in the greenback against a basket of currencies also supported the upside in the Norwegian currency.
USD/NOK trades 0.3 percent lower at 8.7686, having touched a low of 8.7542 earlier, its lowest since July 2019.
The Norwegian Krone has gained more than 15 percent over the last 5-months.
Immediate resistance is located at 8.8364 close above could take it till 8.8585.
On the downside, support is around 8.7285, break below could take it till 8.7044.
