- The USD/NOK is presently trading higher at 10.53, marking a 0.32% increase during Friday's session.
- The US Dollar stands firm as Fed officials show caution due to robust US economic indicators.
- Investors assess the likelihood of a Fed rate cut in March and May as low due to potential adverse implications on price stability.
- The USD is anticipated to see gains as the market adjusts its easing expectations and pushes the first rate cut from the Fed to June.
In Friday's trading session, the USD/NOK pair is trading at a level of 10.53, registering a modest gain of 0.32%. The US Dollar (USD) is showing a stable performance in light of Federal Reserve (Fed) officials adopting a cautious stance in light of a strong US economy. As a reaction, the probability of a rate cut in March and May by the Fed appears to be low according to the market’s expectations.
On the other hand, the short term of the NOK will be dictated on whether the Norges Bank will follow the Fed’s stance to delay cuts which will be guided by local data. In addition, the Norwegian currency gained momentum in 2024, due to rising Oil prices, as it is an important global producer, so in case, the black gold advances further the pair’s upside may be limited.
USD/NOK technical analysis
On the daily chart, the Relative Strength Index (RSI) for the USD/NOK is currently in positive territory. The upward slope indicates that buyers are beginning to assert control as the RSI readings moved from negative to positive region recently.
Comparatively, the RSI on the hourly chart shows similar signs of buyer dominance as the readings fall within the positive territory. This reaffirms the presence of the buying sentiment in both short and long-term perspective. Nonetheless, this perspective is somewhat dampened by the Moving Average Convergence Divergence (MACD). The MACD shows red bars in the hourly and daily chart, indicating negative momentum despite being flat. This indicates the presence of sellers in the market, putting a halt to the buying pressure as reflected by the RSI.
In the broader context, the pair is below its 20, 100, and 200-day Simple Moving Averages (SMAs) which is indicative of a controlled bear market. However, the underlined strengthening buyer dominance seen from the RSI might provide a reversal in trend if it maintains its consistency.
USD/NOK daily chart
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 holds steady near 0.6250 ahead of RBA Minutes
The AUD/USD pair trades on a flat note around 0.6250 during the early Asian session on Monday. Traders brace for the Reserve Bank of Australia Minutes released on Monday for some insight into the interest rate outlook.
USD/JPY consolidates around 156.50 area; bullish bias remains
USD/JPY holds steady around the mid-156.00s at the start of a new week and for now, seems to have stalled a modest pullback from the 158.00 neighborhood, or over a five-month top touched on Friday. Doubts over when the BoJ could hike rates again and a positive risk tone undermine the safe-haven JPY.
Gold price bulls seem non-committed around $2,620 amid mixed cues
Gold price struggles to capitalize on last week's goodish bounce from a one-month low and oscillates in a range during the Asian session on Monday. Geopolitical risks and trade war fears support the safe-haven XAU/USD. Meanwhile, the Fed's hawkish shift acts as a tailwind for the elevated US bond yields and a bullish USD, capping the non-yielding yellow metal.
Week ahead: No festive cheer for the markets after hawkish Fed
US and Japanese data in focus as markets wind down for Christmas. Gold and stocks bruised by Fed, but can the US dollar extend its gains? Risk of volatility amid thin trading and Treasury auctions.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.