FxWirePro: USD/NOK slumps near 3-month trough, major support at 200-DMA
The Norwegian Krone rallied to a near 3-month peak following the release of better-than-expected manufacturing PMI. Norway's DNB Manufacturing PMI increased to 45.9 in May from an upwardly revised 43 in the previous mont…
The Norwegian Krone rallied to a near 3-month peak following the release of better-than-expected manufacturing PMI.
Norway's DNB Manufacturing PMI increased to 45.9 in May from an upwardly revised 43 in the previous month and compared to forecast of 45.
Moreover, broad-based U.S. dollar weakness and a rise in the crude oil prices supported the upside in the Norwegian currency.
Crude oil prices surged as traders waited to see whether major crude producers agreed to extend their huge output cuts to support prices at a meeting expected later this week.
International benchmark Brent crude was trading 2.1 percent higher at $39.34 per barrel by 0851 GMT, having hit a high of $39.36 earlier, its highest since March 11. U.S. West Texas Intermediate was trading 1.9 percent up at $36.24 a barrel, after rising as high as $36.27 earlier, its highest since March 11.
USD/NOK trades 0.5 percent down at 9.5616, having touched a low of 9.5464 earlier, its lowest March 11.
Major Support: 200-DMA
Immediate resistance is located at 9.6627, close above could take it till 9.6968.
On the downside, support is around 9.5428 break below could take it till 9.4953.
