USD/NOK continues losing ground after US PPI, CPI data looms

Source Fxstreet
May 14, 2024 18:45
  • Jerome Powell stated on Tuesday that his confidence in inflation coming down is lower.
  • The US reported that April’s PPI aligned with expectations.
  • April’s CPI and Retail Sales will define the outlook of the USD.

The USD/NOK pair is trading lower on Tuesday. Overall, the USD strength persists despite a mild bearish pressure and Jerome Powell confirmed its wait-and-watch approach by the bank.

The US economy continues to showcase considerable strength, with persistent indications of a resilient labor market and sustained consumer spending, as noted by Federal Reserve Chairman Jerome Powell on Tuesday. His sentiment, however, carried a note of caution regarding the dilemma of inflation and the subsequent need for consistency in implementing restrictive policies.

On the data front, the US Producer Price Index (PPI) figures resonated with these insights, reporting a year-on-year increase of 2.2% in April, in conformity with market forecasts. On Wednesday, the US will report April's Consumer Price Index (CPI) which is expected to have shown a deceleration and will shape the expectations for the next Fed decision. As for now, the kick-off of the easing is seen starting in September.

USD/NOK technical analysis

On the daily chart, the Relative Strength Index (RSI) is oscillating within negative territory, signaling that sellers may continue to control the market. Despite a brief shift in momentum on Monday, with the RSI hitting 50.99, the most recent session sees the RSI at 46.20, suggesting a continuation of the bearish sentiment. The Moving Average Convergence Divergence (MACD) histogram further bolsters this sentiment, with its red bars increasing, indicative of a growing bearish momentum.

USD/NOK

Overview
Today last price 10.8083
Today Daily Change -0.0088
Today Daily Change % -0.08
Today daily open 10.8171
 
Trends
Daily SMA20 10.9574
Daily SMA50 10.7962
Daily SMA100 10.6245
Daily SMA200 10.7028
 
Levels
Previous Daily High 10.9094
Previous Daily Low 10.7964
Previous Weekly High 10.9612
Previous Weekly Low 10.6571
Previous Monthly High 11.1373
Previous Monthly Low 10.518
Daily Fibonacci 38.2% 10.8396
Daily Fibonacci 61.8% 10.8663
Daily Pivot Point S1 10.7726
Daily Pivot Point S2 10.728
Daily Pivot Point S3 10.6596
Daily Pivot Point R1 10.8855
Daily Pivot Point R2 10.954
Daily Pivot Point R3 10.9985

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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