FxWirePro: Norwegian Krone retreats from 6-month peak as crude oil slumps on demand concerns
Thursday, July 30, 2020 10:58 AM UTC
- The Norwegian Krone eased, drifting away from a 6-month peak hit earlier iin the session, weighed down by a fall in oil prices, while the greenback rebounded against a basket of currencies.
- Crude oil prices declined amid concerns that surging coronavirus infections could dent a recovery in fuel demand.
- International benchmark Brent crude was trading 1.5 percent lower at $43.09 per barrel by 1052 GMT, having hit a high of $44.86 last week, its highest since March 6. U.S. West Texas Intermediate was trading 1.7 percent lower at $40.60 a barrel, after rising as high as $42.49 last week, its highest since March 6.
- The dollar index rebounded from an over 2-year low as Federal Reserve policymakers repeated a pledge to use their full range of tools to support the economy.
- USD/NOK trades 1.1 up at 9.1237, having touched a low of 9.0013 earlier, its lowest since Jan 27.
- Immediate resistance is located at 9.1615 (10-DMA), close above could take it till 9.1860.
- On the downside, support is around 8.9870, break below could take it till 8.9574.