FxWirePro: USD/NOK slumps to an over 1-year trough, likely to break below 8.6500
The Norwegian Krone rallied to a fresh over 1-year peak following the release of upbeat economic data and a rebound in the crude oil prices. Norway's manufacturing PMI increased to 46.10 points in August from 42.80 point…
The Norwegian Krone rallied to a fresh over 1-year peak following the release of upbeat economic data and a rebound in the crude oil prices.
Norway's manufacturing PMI increased to 46.10 points in August from 42.80 points in July of 2020.
Crude oil prices regained some ground, erasing overnight losses, as investors await the release of U.S. stockpile data from the American Petroleum Institute industry group.
U.S. crude stocks are expected to fall by about 2 million barrels in the week to Aug. 28, while gasoline inventories are seen falling by 3.6 million barrels.
International benchmark Brent crude was trading 0.3 percent up at $45.68 per barrel by 0843 GMT, having hit a high of $46.50 on Monday, its highest since March 6. U.S. West Texas Intermediate was trading 0.6 percent up at $43.02 a barrel, after rising as high as $43.75 on Wednesday, its highest since March 6.
Moreover, the plunge in the U.S. dollar to an over 2-year low also supported the bid tone around the Norwegian currency.
USD/NOK trades 0.05 percent lower at 8.6980, having touched a low of 8.6506 earlier, its lowest since July 2019.
Immediate resistance is located at 8.7676 close above could take it till 8.7924.
On the downside, support is around 8.6272, break below could take it till 8.6073.
