FxWirePro- USDNOK Daily Outlook

The Norway Krone showed a nice pullback in the past three weeks. It hit a low of 10.44 and is currently trading around 10.59.

The policy divergence between the Fed and Norges Bank puts higher pressure on the US dollar.

Norges Bank monetary policy-

Norges Bank has kept its rates unchanged at 16 -16-year high of 4.50%. The forward guidance indicates that the central bank ““will likely be kept at the current level for some time”. It said the bank is open for a rate hike or rate cut as early as possible depending on inflation.

Inflation-

Norway's2 headline inflation slowed down to 2.8% and core inflation declined to 3.1%, well below the central bank forecast of 3.9% and 3.7% for Q3.

Economic growth-

Norway's Mainland GDP grew by 0.10% in the second quarter, below expectations of 0.20%.

The weakness in Norway Krone preventing the central bank from cutting rates.

Major resistance- 12.20

Near-term resistance - 11.30

Minor support-  10.40, 10

Trend reversal level- 8

It is good to buy on dips around 10 with SL around 9.50 for a TP 11.30.