USD/NOK drops heavily to near 10.40 on surprise OPEC+ production cut

USD/NOK has delivered a gap-down open near 10.40 after a surprise oil production cut by OPEC+.
Fresh pledge of cutting overall oil production by 1.16 million bpd has led to an overall cut of 3.66 million bpd.
The odds for a further 25bp rate hike by the Fed remain solid despite softening of the US PCE Price Index.

Sagar Dua FXStreet

The USD/NOK pair has witnessed an intense sell-off in the Asian session as investors discount the impact of the surprise drop in oil production announced by Saudi Arabia and other OPEC+ members. The oil cartel will cut the overall oil production by around 1.16 million barrels/day, which has strengthened the Norwegian Krone. Fresh pledge of cutting overall oil production by 1.16 million bpd has led to an overall cut of 3.66 million bpd.

The surprise move by OPEC+ in an attempt to support the oil price has strengthened the currencies of oil-exporting countries, which will receive more funds on exporting oil. Bloomberg reported that the surprise move by OPEC+ would increase the risk of higher inflationary pressures globally and might force central banks to keep policy rates higher for longer.

Meanwhile, S&P500 continued its winning spree on Friday in hopes of no further casualties to the United States banking sector, portraying a risk-on mood. However, fresh oil production cuts could spoil the market mood ahead, therefore, a cautionary approach would be advisable.

The US Dollar Index (DXY) recovered firmly on late Friday to near 102.60 despite more-than anticipated softening of US core Personal Consumption Expenditure (PCE) Price Index data. On a monthly basis, the US PCE Price Index accelerated by 0.3%, lower than the consensus of 0.4% and the former release of 0.5%. Also, the annual US PCE Inflation figure soften to 4.6% from the consensus and prior release of 4.7%. However, the move has not eased expectations of further 25 basis points (bps) rate hike by the Federal Reserve.

As per the CME Fedwatch tool, the odds for a 25bp rate hike to 5.00-5.25% for May monetary policy meeting stand more than 53%.

USD/NOK

Overview
Today last price	10.426
Today Daily Change	-0.0463
Today Daily Change %	-0.44
Today daily open	10.4723

Trends
Daily SMA20	10.5509
Daily SMA50	10.326
Daily SMA100	10.1347
Daily SMA200	10.1356

Levels
Previous Daily High	10.4877
Previous Daily Low	10.3663
Previous Weekly High	10.5616
Previous Weekly Low	10.3468
Previous Monthly High	10.8784
Previous Monthly Low	10.2768
Daily Fibonacci 38.2%	10.4413
Daily Fibonacci 61.8%	10.4127
Daily Pivot Point S1	10.3965
Daily Pivot Point S2	10.3207
Daily Pivot Point S3	10.2751
Daily Pivot Point R1	10.5179
Daily Pivot Point R2	10.5635
Daily Pivot Point R3	10.6393

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.