- USD/NOK rebounds 0.75% and approaches the 10,750 level.
- The US Dollar advances on strong jobless claims data and firm inflation expectations revealed by the UoM.
In the Wednesday session, USD/NOK enjoyed an upward recovery, cruising close to the 10,750 level. The upward moves were fueled by strong US jobless claims numbers and higher inflation expectations from the University of Michigan (UM), which spooked investors.
In line with this, according to the University of Michigan, inflation expectations stood at 3.2% for five years, and despite showing no surprises, it continues to suggest that they remain sticky above the Fed’s 2% target. Others Data showed that the US Department of Labor reported that in the week ending November 18, initial claims for jobless benefits totaled 209,000, marking the lowest reading in five weeks.
In reaction, expectations of sticky inflation and a robust labor market reminded investors that the Federal Reserve (Fed) left the door open to further tightening if necessary. For now, CME’s FedWatch tool indicates that markets are still pricing in a pause at the next Fed meeting in December, and the question is how long the Fed will keep rates at restrictive levels.
The next milestone of the week will be S&P’s preliminary US November PMIs, which will be reported on Friday.
USD/NOK levels to watch
The Relative Strength Index (RSI) is in negative territory, with a positive slope suggesting increased buying momentum. However, the moving average convergence divergence (MACD) shows decreasing red bars, indicative that the selling pressure is gradually relaxing but still present.
Considering the positioning of the pair with respect to the simple moving averages (SMAs), the picture becomes clearer. It currently maintains a position below the 20-day SMA, which implies immediate selling pressure, inhibiting further upside movement in the short term. However, the pair’s position above the 100-day and 200-day SMAs consolidates the long-term bullish influence.
Support Levels: 10,677 (100-day SMA), 10,655 (200-day SMA), 10,600.
Resistance Levels: 10,810, 10,830, 10,900.
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.
