Norwegian krone soars as the US dollar weakens ahead of the US consumer price index. Will EUR / NOK fall?

Norwegian krone, EUR / NOK, crude oil, US dollars, AUD / USD, China-issues

  • Norwegian krone was the best of today’s commodity currencies
  • APNSC equity Mixed after a US session with no direction prior to the US Consumer Price Index
  • The energy market will pause, but remain at a high level. Wsick oil Press NOK high??

Norwegian krone has surpassed all G-10 currencies today. oil Prices continue to support it. NS U.S. dollar It was weak, Australian dollar Everyone’s grades were bad.

The energy market has taken a break today from its sharp rise as the pressure on US gas prices has eased in good weather. The International Energy Agency has warned that the world is not investing in enough energy production to meet future needs.

WTI crude is above US $ 80 a barrel as fuel alternatives continue to support all energy markets.High oil prices are helping to push up EUR / NOK To a low price that was not seen before last year’s pandemic.

APAC shares are Wall street.. The Hong Kong stock market was closed as the typhoon approached. China’s trade data is strong, with exports increasing 20% ​​annually until the end of September.

Chinese media warned that the real estate market is weakening that the story of Evergrande will not disappear soon. Yields on some US dollar junk bonds have been the highest in 10 years.

The World Bank warned of sustained inflation as Senior Vice-President Carmen Reinhart commented that the recent surge in inflation could continue due to multiple supply shocks. Meanwhile, US Treasury Secretary Janet Yellen maintained a temporary mantra of inflation in an interview.

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, called the dirty word “temporary.” There was even a “swearing jar” next to him while he was speaking. Federal Reserve Vice-Chair Richard Clarida said there would be no stagflation in the medium term.

In any case, the market uses Treasury Inflation Protection Securities (TIPS) calculations to price US two-year inflation at 2.75% according to Breakeven.

Apple has announced that it will cut production of the iPhone 13 as chip shortages continue to affect output, highlighting the real problems posed by supply chain constraints.

Going forward, market attention will be focused on the most important US consumer price index released today.

EUR / NOK Technical Analysis

EUR/ NOK moved out of the lower bound of the 21-day simple moving average (SMA) -based boring band last week. The retreat into the band may be bullish, but price behavior that has moved only laterally continues to push near fresh lows.

EUR / NOK continues to trade on the downtrend channel. Support may be provided at the low of 9.7959 in early 2020. The initial resistance may currently be provided at the intersection of the 10.100 downtrend line, or at the recent high of 10.2312.

chart NSRating on TradingView

— Written by Daniel McCarthy, strategist at

To contact Daniel, use the comments section below or @DanMcCathyFX On twitter

Norwegian krone soars as the US dollar weakens ahead of the US consumer price index. Will EUR / NOK fall?

Source link Norwegian krone soars as the US dollar weakens ahead of the US consumer price index. Will EUR / NOK fall?

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