USD/NOK rebounds from lows near 8.5000

The Norwegian Krone is trading on a firm note on Monday and is now sending USD/NOK to the lower bound of the range in the 8.5000 region.

USD/NOK weaker on USD-selling, oil

NOK has gathered extra pace in response to the sharp recovery in crude oil prices, with the barrel of Brent crude surpassing the $52.00 mark on increasing hopes of an extension of the current OPEC output cut deal to Q1 2018.

Saudi and Russian oil ministers have agreed earlier in the European morning that in order to rebalance further the oil market, the ongoing deal should be extended to the first quarter of the next year. The decision, however, could surely come at the OPEC meeting next week.

Adding to the downbeat sentiment, the selling bias around the buck has spread into today’s session following poor results from US CPI and Retail Sales during last month, all dragging the cross to fresh 3-week lows.

USD/NOK levels to watch

At the moment, the cross us losing 0.27% at 8.5383 facing the next support at 8.4950 (low May 15) followed by 8.4713 (low Apr.24) and finally 8.4057 (200-day sma). On the upside, a surpass of 8.5998 (20-day sma) would open the door for 8.6164 (high May 12) and then 8.7086 (high May 10).