Listen to the market mood for the USDNOK currency pair in the coming session.
The NOK is weak as the Norwegian Central bank has cut interest rates to 1.0% from 1.50% due to the uncertainty of the coronavirus. The Ministry of Finance has, at the Norges Bank’s recommendation cut the countercyclical buffer to 1.0% from 2.5%.
The USD should be strong as safe have demand starts to build for the USD.
Therefore, expect USDNOK buyers at pullbacks.
Risks to this outlook
Any news of a surprise Fed rate cut and any positive news for oil will negate this outlook.