- The USD/NOK rallied and settled near the 10.935 level.
- US JOLTs Job Openings for October where lower than expected. The ISM Services PMI in November came in better than expected.
- The US Dollar Index rose to its highest since mid-November.
In Tuesday's session, the USD/NOK edged higher, trading around 10.935 seeing 0.80% gains following the reports of robust Institute for Supply Management (ISM) reading and softer-than-anticipated JOLTs Openings figures. The USD managed to shrug off the week's labor market figures and capitalized on the positive figures of the service sector, which fueled the DXY index to its highest since mid-November.
In that sense, the JOLTs Job Openings reported by the U.S. Bureau of Labor Statistics for October decreased to 8.733 million, falling from the previous 9.35 million and below the 9.3 million consensus expectation. On the positive side, the Institute for Supply Management (ISM) Services PMI for November had a consensus forecast of 52 and increased from 51.8 to 52.7, indicating a slight expansion in the services sector.
As the Federal Reserve (Fed) noted that it still needs additional evidence of the economy cooling down, the strong economic activity evidence doesn’t favor the dovish rhetoric as it could push the Fed to take a more aggressive approach. That being said, the focus now shifts to Friday, where the US will report the expected Average Hourly Earnings from November at 4% YoY vs the previous 4.1%. The Nonfarm Payrolls are also due and expected to have accelerated to 180,000, compared to the previous 150,000, while the Unemployment rate is seen coming in at 3.9% YoY.
Those key labor market metrics will play a bigger role in the next decisions of the Federal Reserve (Fed), so the pair price dynamics may see volatility based on their outcome.
USD/NOK levels to watch
The daily chart indicators reveal that the bulls have gathered strong momentum. On one side, the fact that the pair is stationed firmly above the 20, 100, and 200-day Simple Moving Averages (SMAs) indicates dominant bullish sentiment and persistent buying momentum. This observation is further validated by the current rising red bars of the Moving Average Convergence Divergence (MACD) and the positive slope marked in the Relative Strength Index (RSI).
Support Levels: 10.840 (20-day SMA), 10.710 (200-day SMA), 10.670 (100-day SMA).
Resistance Levels:11.000, 11.130, 11.250.
USD/NOK daily chart
-638374024955627899.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
EUR/USD recovers from two-year lows, stays below 1.0450
EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
S&P Global PMIs set to signal US economy continued to expand in November
The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.