- USD/NOK saw mild losses on Friday’s session, around 10.66.
- Despite mixed reactions to softening economic data, the Dollar remains steady due to a cautious stance from Fed officials.
- The Fed recognized progress but that it needs further data to start cutting.
The USD/NOK stands mildly down on Friday with the Greenback holding its ground thanks to the cautious tone of the Federal Reserve (Fed) officials. They mention that the Consumer Price Index (CPI) figures have yet to meet the Fed’s desired targets which makes the market attach to their bets of the easing starting in September.
Fed officials, including Raphael Bostic, Loretta Mester, and Thomas Barkin, have adopted a cautious stance in light of recent US economic data. Despite softening figures, the US Dollar has remained resilient, reflecting confidence in the existing monetary policy. The difficulty appears in the inflation trajectory, with Bostic and Mester both emphasizing the necessity of awaiting further data before deciding on potential rate adjustments. Barkin’s remarks echo this cautious mindset, noting that the current CPI does not reflect the Fed’s target for inflation, suggesting possible adjustments in the near future.
USD/NOK technical analysis
On the daily chart, the Relative Strength Index (RSI) for the USD/NOK pair is in negative territory, marking an overall bearish momentum. There is a gradual descent, indicating a continuous sell-off with no immediate signs of reversal. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram produces flat red bars, suggesting a stable negative momentum supplementing further support to the prevailing downward pressure.
USD/NOK daily chart
When considering the Simple Moving Average (SMA) analysis, the pair can be seen between the 200 and 100-day SMAs which reflects a negative outlook in the overall trend. On the short-term, the outlook also favors the bears as the pair stands below the 20-day SMA.
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