- USD/NOK saw green on Friday, rising 0.50% above 10.788.
- Investors expect the NB to deliver a 25 basis point hike to 4.25% next week.
- The Fed decision will likely be a pause next Wednesday.
On the last day of the week, the USD/NOK gained additional traction, rising to multi-month highs above 10.788.
On the NOK’s side, Norges Bank (NB) is anticipated to announce a 25 basis point hike, bringing the key rate to 4.25% in the next week and will likely be the last increase of its tightening cycle. However, the bank is expected to maintain rates at restrictive levels to reassure, and incoming data will ultimately decide when the first rate cut will come or when the bank will maintain rates highs. In the meantime, recent economic data, including inflation numbers and the Norwegian Krone (NOK) stability, have generally aligned with the central bank's expectations.
For next week’s Federal Reserve (Fed) decision, markets have already warranted a pause, but attention is set on the monetary policy statement and Chair Powell’s tone. The last data sets have shown that the US economy is holding firm, seemingly achieving a soft landing while inflation figures accelerated in August, so one more hike will be justified. As for now, the CME FedWatch tool indicates that the odds of a 25 basis point hike in November or December have somewhat eased to 35%.
USD/NOK Levels to watch
Based on the daily chart, the USD/NOK exhibits a bullish outlook for the short term. Both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain in positive territory, with the RSI above its midline and showing a northward slope. The MACD is also displaying green bars, indicating a strengthening bullish momentum. Furthermore, the pair is above the 20,100,200-day Simple Moving Average (SMA), suggesting that the bulls are firmly in control of the bigger picture.
Support levels: 10.703,10.671 (20-day SMA), 10.625.
Resistance levels: 10.779, 10.837, 10.850.
USD/NOK Daily Chart
-638304110076960613.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.