USDNOK stands for the United States dollar vs. the Norwegian krone currency pair. The Norwegian krone is among the most popular non-major currencies. In 2000, the pair got significantly stronger, mostly because of oil prices flying higher. Moreover, the economic policy of Norway added much to the pair reputation, as during the global economic crisis the country got the less damage in the sector of economy due to wise investments of the country’s monetary policy makers. The following factors are of chief importance for the Norwegian krone: the oil prices, the country’s credit rating and the overall stance of the currency market.
It should be noted that Norway is one of the largest oil exporters in the Western Europe, and is strongly dependent on the energy market climate.
The rate of the Norwegian krone versus the United States dollar has demonstrated a steady climb over the last decade. For example, in 2001 the correlation between the currencies was as follows: one American dollar cost nine Norwegian kroner. However, in ten years one dollar was bought for less than 6 kroner.
The dynamics of the American dollar rate is mainly determined by the macroeconomic indicators of the country. The greenback’s unpredictable and strong fluctuations make it the most often used currency on Forex, especially by speculators who prefer short trades with the purpose of getting high yield within a narrow time.
The USDNOK pair fundamental analysis is based on the American dollar rate. If the USD confidence is low, the pair is to move downwards.