Forex Market: USD/NOK daily outlook

During yesterday’s trading session USD/NOK traded within the range of 6.0273-6.0545 and closed at 6.0470.

At 7:23 GMT today USD/NOK was losing 0.06% for the day to trade at 6.0460. The pair touched a daily low at 6.0446 at 0:45 GMT.

Fundamental view

At 9:00 GMT the Norges Bank will announce its decision on interest rates. Analysts expect that the central bank will probably keep the benchmark rate unchanged at 1.50% at its policy meeting. The key policy rate has been kept at this level since central banks meeting on March 14th 2012, when a cut by 0.25% was introduced.

United States final annualized Gross Domestic Product probably expanded 2.7% during the last quarter of 2013, according to the median estimate by experts. The revised GDP, announced on February 28th, was 2.4% during Q4.

This is the widest indicator for nations economic activity. A larger than expected increase in the GDP figure would boost demand for the US dollar. The official result is to be released at 12:30 GMT.

At the same time, the number of people who filed for unemployment assistance in the United States probably increased to 325 000 during the week ended on March 22nd from 320 000, registered during the preceding week. The weekly report on initial jobless claims, which reflects lay-offs in the country, is due out also at 12:30 GMT.

The index of pending home sales in the United States probably demonstrated a flat performance in February compared to January, when sales climbed 0.1%. This indicator shows activity in terms of signing contracts for purchases of existing single-family houses. Actual payments are made one to two months, after the contract has been signed. The National Association of Realtors (NAR) will announce the official index value at 14:00 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case USD/NOK manages to breach the first resistance level at 6.0586, it will probably continue up to test 6.0701. In case the second key resistance is broken, the pair will probably attempt to advance to 6.0858.

If USD/NOK manages to breach the first key support at 6.0314, it will probably continue to slide and test 6.0157. With this second key support broken, the movement to the downside will probably continue to 6.0042.