FxWirePro: Norwegian Krone slumps to 1-week low as oil prices ease on oversupply concerns
Wednesday, October 28, 2020 10:58 AM UTC
- The Norwegian Krone slumped by nearly 2 percent to a 1-week low as crude oil prices plunged on oversupply fears.
- Crude oil prices declined to an over 3-week peak as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand.
- Data from industry group the American Petroleum Institute showed, U.S. crude oil and gasoline stocks rose last week, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, against analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.
- International benchmark Brent crude was trading 2.3 percent down at $39.77 per barrel by 1047 GMT, having hit a low of $39.76 earlier, its lowest since October 5. U.S. West Texas Intermediate was trading 2.7 percent lower at $37.91 a barrel, after falling as low as $37.91 earlier, its lowest since October 5.
- Investors seem to have ignored upbeat economic data, showing Norway retail sales increased 8.70 percent in September over the same month in the previous year.
- USD/NOK trades 1.9 percent higher at 9.3243, having touched a high of 9.3287 earlier, its highest since October 20.
- Immediate resistance is located at 9.3401, close above could take it till 9.3642.
- On the downside, support is around 9.1330, break below could take it till 9.1130.