- The USD/NOK pair stands at 11.0480 with slight gains.
- US government bond yields are rising and rebounding, providing support to the USD.
- Chairman Powell and other Fed officials will be on the air throughout the week.
He USD/NOK held firm in Monday’s session and traded around the 11.0480 area with slight gains, driven by rising US bond yields and a negative mood in the markets, which dictated the pace of moves during the session . No relevant data was published in both countries, and the highlight of the week will be speeches by Jerome Powell and other Federal Reserve (Fed) officials, where investors will look for more clues about upcoming decisions.
At the moment, the Dollar has weakened significantly, mainly because the Markets are confident that the Fed is reaching the end of its tightening cycle, as the effects of monetary policy are now beginning to take effect. On Friday, the US Nonfarm Payrolls report showed a slowing pace of job creation and rising unemployment, signs that Fed officials wanted to see. In reaction, US yields plunged, as did hawkish bets on the Fed’s upcoming December meeting, as swap markets are now pricing in just a 10% chance of a 25 basis point hike.
That said, Powell left the door open for another hike in December should the data justify it, and the bank will receive two inflation readings and a jobs report until then, which will likely shape the decision.
Meanwhile, US Treasury yields, which fell to multi-week lows last week, are recovering and have helped the dollar stop its bleeding. The 2-year bond yield rose to 4.90%, while the 5- and 10-year yields rose to 4.60% and 4.65%.
USD/NOK levels to watch
On the daily chart, USD/NOK maintains a neutral to bearish technical outlook, with the bears gradually firming but still having more work to do. The Relative Strength Index (RSI) is sloping flat near the bearish territory, while the Moving Average Convergence Histogram (MACD) features larger red bars. In the broader context, the pair is below the average 20-day SMA, but above the 100-day and 200-day SMA, implying that the bulls remain in control on a broader scale.
Supports: 11,038, 11,025, 11,020
Resistances: 11,057 (20-day SMA), 11,110, 11,150.
USD/NOK daily chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
