FxWirePro: USD/NOK off 1-week low, next hurdle at 5-DMA
Thursday, October 22, 2020 12:24 PM UTC
- The Norwegian Krone eases, retreating from a 1-week peak hit in the prior session as the greenback rose against a basket of currencies.
- The dollar index rebounded as stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise on fresh stimulus, despite reports of some progress earlier in the day.
- Moreover, downbeat economic data further dented the bid tone around the Norwegian currency.
- Norway's seasonally adjusted unemployment rate increased to 5.3 percent in the three months to September, above market expectations of 5.1 percent and the highest rate since the series began in January-March 1997 period.
- However, the downside in the Norwegian currencies appears limited as crude oil prices surged from recent lows.
- USD/NOK trades 0.4 percent higher at 9.2436, having touched a low of 9.1778 on Wednesday, its lowest since October 13.
- Immediate resistance is located at 9.2917 (5-DMA), close above could take it till 9.3139 (21-DMA).
- On the downside, support is around 9.1737, break below could take it till 9.1309.