The worst could be behind Norway's crown
Nov 11 (Reuters) -The U.S. election dust is still settling and USD/NOK is maintaining a bid, but for Norway's crown the worst might now be behind it and there could be scope for USD/NOK and possibly more so for EUR/NOK to retrace some of the gains seen this year.
USD/NOK could be the loose cannon for the remainder of 2024 as uncertainty over president-elect Donald Trump's policy changes keeps the dollar on the boil. However, with the Norges Bank likely to be very late to the rate cut party, and likely limited in how far it can cut rates, the NOK might set a bullish course into the turn of the year.
Norwegian economic growth is also set to better Norges Bank estimates and analysts are expecting unemployment to undercut official forecasts even with limited scope to cut rates.
Technically, EUR/NOK has dropped below the 100-day moving average and daily Ichimoku cloud base, 11.7676 and 11.7683, respectively. The cross is trading above the Nov. 7 11.6980 low, but the advantage remains with the bears. The big support point is at 11.6550, the 200-day moving average, which has supported EUR/NOK since July 10. The bullishly skewed range, in place since July, has a base at 11.6040.
For more click on FXBUZ
EUR/NOK daily Ichimoku chart: https://tmsnrt.rs/4fmjVDJ
(Peter Stoneham is a Reuters market analyst. The views expressed are his own)
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