News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
USDNOK Plunges, Breaks 15-Month Support on Hawkish Norges Bank

USDNOK Plunges, Breaks 15-Month Support on Hawkish Norges Bank

Dimitri Zabelin, Analyst

TALKING POINTS – USDNOK FORECAST, NORGES BANK, CRUDE OIL PRICES

  • USDNOK breaks critical 18-month rising support
  • Norges Bank continues to express hawkish outlook
  • Slower global growth may undermine rate hike cycle

See our free guide to learn how to use economic news in your trading strategy!

USDNOK plunged over one percent and broke through a 15-month rising support channel after the Norges Bank raised the benchmark interest rate to 1.25 percent and hinted at a future hike in 2019. Central Bank Governor Oystein Olsen said the decision to hike was unanimous across the board and said that growth in 2020 will be stronger than previously forecasted.

USDNOK Plunges After Norges Bank Raises Rates, Hints at Future Hikes in 2019

Chart Showing USDNOK

USDNOK’s sharp decline began after Fed Chairman Jerome Powell announced the decision to hold rates and radiated dovish tones that sent the US Dollar lower. USDNOK’s descent began at the FOMC meeting and was amplified by the Norges Bank’s hawkish outlook. The culprit behind the June 20 candle’s plunge appears to be a divergence in monetary policy between both central banks and broader weakness in the Greenback.

Several inflation and GDP forecasts were all revised upward, lending to credence to the notion that the central bank has a strong case for remaining hawkish. Most of its peers in developed economies are halting or reversing their rate hike cycles as the world economy slows. Norges Bank officials have expressed concern about global developments and hinted that it could impact monetary policy.

Norway’s petroleum-based economy is exposed to violent changes in risk appetite due to the fickle nature of crude oil prices and their sensitivity to shifts in global demand. Furthermore, due to the Nordic country’s strong reliance on healthy European growth, crumbling economic prospects may weigh hurt Norwegian exports and could undermine the Krone.

Looking ahead, Euro Area PMI will be published, though the recent release of the German ZEW survey suggests producers’ assessment of future growth prospects are pessimistic. The data came only shortly after ECB President Mario Draghi said the central bank is ready to re-introduce rate cuts and possibly QE if prevailing economic circumstances continue to deteriorate.

NOK TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES