Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Norwegian Krone Falls as Technical Gauges Signal Gains Excessive

Don't Miss Out —
Follow us on:

Aug. 9 (Bloomberg) -- Norway’s krone weakened for the first time in four days against the euro after technical gauges signaled the rally that pushed it to the strongest level in more than nine years was poised to stall.

The krone depreciated the most against the dollar among the greenback’s 16 major counterparts.

Norway’s currency “has gone very fast and we have certainly entered territory now where the risk of a temporary correction is increasing,” said Kasper Kirkegaard, a senior currency strategist at Danske Bank A/S in Copenhagen. “For the medium-term outlook, we are still very positive on the Norwegian economy and the krone.”

The Norwegian currency fell 0.3 percent to 7.2879 per euro at 4:33 p.m. London time after appreciating to 7.2585 yesterday, the strongest level since January 2003. The krone dropped 0.9 percent to 5.9304 per dollar.

The currency’s so-called 14-day relative-strength index against the euro climbed to 70.5 yesterday, above the level of 70 that some traders use as an indicator that an asset has risen too quickly and is poised to decline.

To contact the reporters on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net; Neal Armstrong in London at narmstrong8@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.