FxWirePro: Norwegian Krone gains as crude oil rallies on hopes of demand recovery
Tuesday, August 11, 2020 11:19 AM UTC
- The Norwegian Krone surged, halting a 3-day losing streak as oil prices rallied, while the greenback eased against a basket of currencies.
- Crude oil prices surged, extending previous session gains, underpinned by expectations of U.S. stimulus and a rebound in Asian demand as economies reopened.
- International benchmark Brent crude was trading 1.2 percent up at $45.48 per barrel by 1057 GMT, having hit a high of $45.54 earlier, its highest since August 5. U.S. West Texas Intermediate was trading 1.5 percent higher at $42.57 a barrel, after rising as high as $42.62 earlier, its highest since August 5.
- The dollar index eased as the U.S. economy outlook has become even more uncertain as the virus spread across the country, fuelling expectations the Federal Reserve will shift to even more aggressive policy settings in September.
- USD/NOK trades 0.8 percent lower at 8.9608, having touched a low of 8.9012 on Thursday, its lowest since Janunary.
- Immediate resistance is located at 9.0790, close above could take it till 9.0847
- On the downside, support is around 8.9346, break below could take it till 8.9180.