- USD/NOK hit its highest since late May at 11,276 on Thursday. On Friday, the pair retreated to 11.170, with losses of 0.20%.
- On Friday, the pair retreated to 11.170, with losses of 0.20%.
- The Dollar is trading lower in the currency markets after the PCE data for September.
In Friday’s session, the USD/NOK is trading at a loss, driven mainly by investor profit-taking after the pair hit its highest level since May 31 on Thursday. The US dollar is trading lower after it was reported that underlying personal consumption spending in September had slowed as expected.
In line, the US Bureau of Economic Analysis reported that the underlying personal consumption price index for September was in line with consensus. It stood at 3.7% year-on-year, compared to the expected 3.7%, but fell from its last reading of 3.8%. In reaction, the 2-year yield stands at 5.03%, while the 5-year and 10-year yields are seen at 4.79% and 4.85%, respectively, with little movement.
It is worth noting that rising US Treasury yields fueled the Norwegian krone’s recent weakness, and as rates retreat from multi-year highs, it limits the pair’s bullish momentum. Additionally, hawkish bets on the Federal Reserve (Fed) remain dovish, which could also curb the pair’s gains. That said, the Fed meets next week, and investors will look for clues in Chairman Powell’s monetary policy statement and press conference to continue betting on upcoming decisions. A pause for next week is all but in the cards, but some market participants are still forecasting some odds of the Fed raising 25 basis points in December, but those expectations could rise or fall depending on the bank’s and Powell’s stance.
USD/NOK levels to watch
The daily chart shows a neutral to bullish technical outlook for USD/NOK as signs of exhausting buying momentum are observed. The Relative Strength Index (RSI) is showing a negative slope but is still in bullish territory, while the Moving Average Convergence (MACD) is showing neutral green bars. However, the pair is above the 20,100,200-day SMA, indicating favorable positioning for the bulls in the bigger picture.
Support Levels: 11,155, 11,083, 11,023 (20-day SMA),
Resistance levels: 11,200, 11,235, 11,276.
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.
