USD/NOK rises on solid Jobless Claims and sticky inflation expectations in US


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  • The USD/NOK rallies 0.75% upwards, navigating near the 10.750 level. 
  • The US Dollar pushes higher on robust Jobless Claims data and steady expectations of inflation revealed by the UoM.

In Wednesday's session, the USD/NOK enjoyed an upward rally, trading near the 10.750 level. The upward movements were fueled by robust Jobless Claims figures from the US and the higher inflation expectations of the University of Michigan (UoM), which spooked investors.

In line with that, according to the University of Michigan, inflation expectations stood at 3.2% for five years, and despite showing no suprises, it still suggests that they remain sticky above the 2% target of the Fed.  Other data showed that the US Department of Labor reported that in the week ending November 18, Initial Jobless Claims totalled 209,000, marking the lowest reading in five weeks.

As a reaction, the expectations of sticky inflation and a robust labour market reminded investors that the Federal Reserve (Fed) left the door open for further tightening in case needed. As for now, the CME FedWatch tool indicates that the markets are still pricing in a pause in the next Fed meeting in December, and the question that arises is for how long the bank will maintain the rates at restrictive levels. 

The next highlight of the week will be November’s preliminary S&P PMIs from the US to be reported on Friday.

USD/NOK levels to watch

The Relative Strength Index (RSI) finds itself in the negative territory, with a positive slope suggesting a buildup in buying momentum. However, the Moving Average Convergence Divergence (MACD) presents decreasing red bars, indicative of the selling pressure gradually easing off but still present.

Considering the pair's positioning with respect to the Simple Moving Averages (SMAs), the picture becomes clearer. It currently holds a position beneath the 20-day SMA, which implies an immediate selling pressure, inhibiting further upward movement in the short term. Yet, the pair's position above the 100 and 200-day SMAs cements the longer-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

USD/NOK

Overview
Today last price 10.7583
Today Daily Change 0.0757
Today Daily Change % 0.71
Today daily open 10.6826
 
Trends
Daily SMA20 11.0495
Daily SMA50 10.9444
Daily SMA100 10.677
Daily SMA200 10.6527
 
Levels
Previous Daily High 10.7131
Previous Daily Low 10.6324
Previous Weekly High 11.162
Previous Weekly Low 10.7741
Previous Monthly High 11.277
Previous Monthly Low 10.6561
Daily Fibonacci 38.2% 10.6632
Daily Fibonacci 61.8% 10.6823
Daily Pivot Point S1 10.639
Daily Pivot Point S2 10.5953
Daily Pivot Point S3 10.5582
Daily Pivot Point R1 10.7197
Daily Pivot Point R2 10.7568
Daily Pivot Point R3 10.8004

 

 

 

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