USDNOK correction from record highs after initial jobless claims jumped to 6,606 million, well above the expectations of 5,250 million in the week ending April 3. The Continuing Jobless Claims came in at 7.455 million, below the estimates of 8 million on March 27, the 4-week average came up to 4265.5K from the previous 2612K. U.S. economy printing a historic high the last three weeks of new jobless claims reaching 16.5 million, pointing to an unemployment rate of around 13%.
The U.S. Producer Price Index registered in at 0.7%, above the expectations of 0.5% in March. The PPI ex Food & Energy came in at 0.2% above the forecasts of 0%.
U.S. Fed stepped in giving one more hand to coronavirus battered economy throwing new 2.3 trillion loans to small and mid-sized businesses as well as state and local governments. The package includes:
The Main Street Lending Program, expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities, a Municipal Liquidity Facility and the Paycheck Protection Program Liquidity Facility.
Fed noted that remains committed to using its full range of tools to support the flow of credit to businesses and households to combat the economic impact of the coronavirus outbreak and promote a swift recovery once the crisis is over.
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USDNOK Levels to Watch
USDNOK trades 0.88% lower at 10.1655 as the correction for all-time highs accelerates amid an increase in crude oil prices and traumatic employment data from the USA. The pair hit an all-time high in late March amid the global rout in markets due to the coronavirus spread. The technical outlook remains bullish as long as the pair trades above the 50-day moving average.
On the downside, the initial support for the pair will be met at 10.1401 the daily low. If USDNOK breaks below, the next support is at 9.9944 the low from March 16 trading session. More bids might emerge at 9.8600 the 50-day moving average.
On the other side, the first resistance stands at 10.3385 the daily high. A settlement above that level today might challenge 10.4532 the high from April 7. A credible move above might test 10.6357 the high from April 3.
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