The Norwegian krone is booming: The strongest growth in the world. Check out our updated USDNOK Forecast!
International experts seems to have faith in the Norwegian krone, the NOK. They find it extremely cheap for the moment and expect it to be much stronger against the SEK (The Swedish krona) and the USD.
While many countries are forced to either limit their fiscal support or dramatically increase loans – both potentially negative signs of a currency, Norway may recover funds from investment abroad (through the use of the Oil Fund), which helps with the support of the Norwegian economy and the currency, the analysts write.
Let’s have a look at the charts and see if we can take advantage of the weak NOK right now.
USDNOK Technical Analysis
MONTHLY shows this pair has dropped down below the .786 at 9.35636 and the up trend line. However, the rsi is in the buy zone and appears to be skimming. If it continues to skim this indicates further down movement from this pair and should go down to the .786 at 8.59303 and possibly to the .860 at 8.24286.
DAILY shows this pair has touched the down trend line .. bounced further down and is now below the .270 finishing with a strong up candle. With the rsi in the sell zone this pair should come down to the .618 at 7.88472 giving 6,426 pips.
HOURLY shows this pair has been following an up trend line, gone to the 1/2 way point between the .270 at 8.62585 and the 1.618 at 8.68316 and dropped back down 1,301 pips and is now sitting just below the ,236 at 8.54169.The rsi has just left the buy zone and headed on it’s way up to the sell zone. This pair should reach the .270 at 8.62585 giving 971 pips. If it goes on to the 1.618 at 8.68316 this would give 1,544 pips.
USDNOK forecast in the news
The back & forth price flow continues for the USDNOK pair, which began the current 4 hour candle off at 8.8687, up 42 pips 0.05% from the previous 4 hours. Out of the 37 instruments in the Forex asset class, USD/NOK ended up ranking 6th for the four-hour candle in terms of price change, according to CFDtrading.
The back and forth price flow continues for USDNOK, which started today off at 9.4596, up 25 pips 0.03% from the previous day. Relative to other instruments in the Forex asset class, USDNOK ranked 11th the previous day in terms of percentage price change, according to CFD Trading. (Updated 6.July 2020)
Norwegian krone suffers harsh reversal ahead of Norges rate decision: Investors are looking ahead to the Norges Bank, which will deliver its rate decision on Thursday.Norwegian krone falls as crude oil declines
″(Norway’s) demographics and domestic medical infrastructure make it better equipped for the outbreak than many other countries, and its strong fiscal position puts it at a distinct advantage,” Goldman analysts, led by co-heads of global foreign exchange, Zach Pandl and Kamakshya Trivedi, said in the note on Sunday.CNBC
Short selling as recommended by Goldman Sachs analysts involves borrowing a currency while anticipating that its value would drop within a specified period. The borrowed funds are sold at the current market price. When the expected price drop happens, the short seller buys back the currency and pays back the loan. The profit is made from the depreciation within the specified period, according to Coinspeaker.
In a recent policy statement, Norway announced that it would further increase daily transactions from NOK 2.1 billion to NOK 2.3 billion in its quest to improve economic buoyancy.Coinspeaker
The Goldman Sachs team outlined that the Norwegian krone is best positioned for a sterling performance throughout the rest of the crisis. The krone presently trades at 9.68 to the USD. Its strength stems from the fact that while other countries limit their fiscal policy to borrowing, Norway focused on fund repatriation from its investments overseas.
The Norwegian krone declines sharply and had a phenomenal development last week, according to Nettavisen. “The strongest krone of them all lately,” is the title of the morning report to DNB Markets on Thursday. Since the base levels in March, the krone has strengthened by about 16 per cent against the euro and a full 20 per cent against the dollar.
There has been an increase in oil prices, which is closely linked to better sentiment in the markets. There is a little less skepticism about taking risks, which has led to stock market upswing.
A stronger krone, in isolation, means that the goods we buy from abroad are cheaper. It also becomes cheaper to vacation abroad when it opens up again for foreign travel. By contrast, Norwegian goods are becoming more expensive for foreigners, and a strengthened krone could be negative for Norwegian export companies.
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