USD/NOK advances mildly driven by higher US yields

Share:
  • The USD/NOK is seen at 11.0480 with mild gains.
  • US government bond yields are rising and rebounded, providing support to the USD.
  • Chair Powell and several other Fed officials will be on the wires during the week.

The USD/NOK stayed firm in Monday's session and traded at the 11.0480 area with mild gains, driven by rising US bond yields and a negative market mood, which dictated the pace of the movements during the session. In either country, no relevant data was released, and the week’s highlights will be Jerome Powell and other Federal Reserve (Fed) official's speeches, where investors will look for further clues on the next decisions.

As for now, the USD has weakened significantly, mainly because markets are confident that the Fed is reaching the end of its tightening cycle as the effects of the monetary policy are starting to kick in just now. On Friday, the US Nonfarm Payrolls report saw the job creation pace decelerating and the Unemployment rising, signs that the Fed officials wanted to see. As a reaction, the US yields plummeted, as well as the hawkish bets on the next December meeting of the Fed, as swaps markets are now pricing only 10% odds of a 25 bps hike.

That being said, Powell left the door open for another hike in December in case the data justified it, and the bank will get two inflation readings and a jobs report until then, which will likely shape the decision.

In the meantime, the US Treasury bond yields, which fell to multi-week lows last week, are recovering and have helped the US dollar stop its bleeding. The 2-year bond rate rose to 4.90%, while the 5 and 10-year yields increased to 4.60% and 4.65%. 

USD/NOK Levels to watch

Based on the daily chart, USD/NOK maintains a neutral to bearish technical perspective, with the bears gradually asserting themselves but still have more work to do. The Relative Strength Index (RSI) has a flat slope near the bearish territory, while the Moving Average Convergence (MACD) histogram presents bigger red bars.In the larger context, the pair is below the 20-day Simple Moving Average (SMA), but above the 100 and 200-day SMAs, implying that the bulls remain in control on a broader scale.

Supports: 11.038, 11.025, 11.020
Resistances: 11.057 (20-day SMA), 11.110, 11.150.

USD/NOK daily chart

USD/NOK

Overview
Today last price 11.0399
Today Daily Change -0.0065
Today Daily Change % -0.06
Today daily open 11.0464
 
Trends
Daily SMA20 11.0459
Daily SMA50 10.8703
Daily SMA100 10.6472
Daily SMA200 10.6027
 
Levels
Previous Daily High 11.1808
Previous Daily Low 11.0221
Previous Weekly High 11.2519
Previous Weekly Low 11.0221
Previous Monthly High 11.277
Previous Monthly Low 10.6561
Daily Fibonacci 38.2% 11.0827
Daily Fibonacci 61.8% 11.1201
Daily Pivot Point S1 10.9854
Daily Pivot Point S2 10.9244
Daily Pivot Point S3 10.8267
Daily Pivot Point R1 11.144
Daily Pivot Point R2 11.2417
Daily Pivot Point R3 11.3027

 

 

 

Share: Feed news