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FxWirePro: Norwegian Krone off 1-week peak as crude oil declines on COVID-19, U.S. election concerns

  • The Norwegian Krone eased, retreating from a 1-week peak following downbeat economic data. 
     
  • Norway's industrial production increased 6.3 percent year-on-year in September, the least since June, slowing from an 8.3 percent gain in the previous month. On monthly basis, industrial production decreased 1.70 percent in September from 1.1 percent in August. 
     
  • Separate data showed manufacturing production in Norway decreased 3.40 percent in September over the same month in the previous year.
     
  • On Thursday, the Norwegian currency gained as much as 1.6 percent after Norges Bank kept its key policy interest rate on hold at a record low zero percent and said the economy was developing largely as anticipated.
     
  • Moreover, weakness in the crude oil prices further dented the bid tone around the Norwegian currency.
     
  • Crude oil prices declined as new lockdowns in Europe to contain the spread of the coronavirus disease raised questions about the outlook for crude demand, while markets remained on edge over the drawn-out vote counting in the U.S. election. 
     
  • International benchmark Brent crude was trading 0.7 percent down at $40.39 per barrel by 0928 GMT, having hit a high of $41.50 on Thursday, its highest since October 26. U.S. West Texas Intermediate was trading 0.8 percent lower at $38.19 a barrel, after rising as high as $39.34 on Thursday, its highest since October 27.
     
  • USD/NOK trades 0.5 percent higher at 9.1990, having touched a low of 9.1362 earlier, its lowest since October 27.
     
  • Immediate resistance is located at 9.2546 (55-DMA), close above could take it till 9.2897 (21-DMA).
     
  • On the downside, support is around 9.1250, break below could take it till 9.1127.  
  • Market Data
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