FxWirePro: USD/NOK slumps near 3-month trough, major support at 200-DMA
Tuesday, June 2, 2020 8:59 AM UTC
- 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.