Alpari.com - Daily Market Analytics

On Tuesday the 5th of May, trading on the EURUSD pair closed up. The single currency initially dropped to 1.1653 in the European session. By the end of the day, buyers had recovered all of their losses, bringing the rate back up to 1.1732.

PMI data from the US was strong and exceeded market expectations. Their positive effect was short-lived, however. Rumours that the ECB will discuss its QE program at its next meeting on the 14th of June shifted the sentiment among speculators. The euro rose against most other currencies and currently shows no sign of losing the ground it’s gained.

US data:

ISM non-manufacturing PMI (May): 58.6 (forecast: 57.5, previous: 56.8).
Markit services PMI (May): 56.8 (forecast: 55.7, previous: 55.7).
Day’s news (GMT+3):

10:15 Switzerland: CPI (May).
15:30 Canada: imports (Apr), exports (Apr), building permits (Apr).
15:30 USA: trade balance (Apr), nonfarm productivity (Q1).
17:00 Canada: Ivey PMI (May).
17:30 USA: EIA crude oil stocks change (1 Jun).
Current situation:

Yesterday, everything turned out as I expected. After an unsuccessful attempt at continuing upwards, our pair broke through the trend line. The euro dropped after the publication of positive UK data. From around 1.1655 – 1.1663, prices recovered to 1.1732. Now 20 euros to usd at 17.06700. The ECB rumours helped to produce the second scenario on yesterday’s chart.

I’ve had to rewrite this review three times already due to sharp price fluctuations, which is why there is no chart today. I couldn’t figure out what caused these fluctuations, but I’m setting a resistance a 1.1760. According to chart analysis, a rebound is likely here. I don’t see any particularly important news releases for today.

The krone was introduced in 1875, replacing the Norwegian speciedaler/spesidaler at a rate of 4 kroner = 1 speciedaler. In doing so, Norway joined the Scandinavian Monetary Union, which had been established in 1873. The Union persisted until 1914. After its dissolution, Denmark, Norway, and Sweden all decided to keep the names of their respective and since then separate currencies.

Within the Scandinavian Monetary Union, the krone was on a gold standard of 2,480 kroner = 1 kilogram of pure gold (1 krone = 403.226 milligrams gold). This gold standard was restored between 1916 and 1920 and again in 1928. It was suspended permanently in 1931, when a peg to the British pound of 19.9 kroner = 1 pound was established.(The previous rate had been 18.16 kroner = 1 pound). In 1939, Norway pegged the krone temporarily to the U.S. dollar at a rate of 4.4 kroner = 1 dollar. Nonetheless, Norway would continue to hold the Kingdom's gold reserves.

During the German occupation (1940–1945) in the Second World War, the krone was initially pegged to the Reichsmark at a rate of 1 krone = 0.6 Reichsmark, later reduced to 0.57. After the war, a rate of 20 kroner = 1 pound (4.963 kroner = 1 U.S. dollar) was established.[citation needed] The rate to the pound was maintained in 1949, when the pound devalued relative to the U.S. dollar, leading to a rate of 7.142 kroner = 1 U.S. dollar. In December 1992, the Central Bank of Norway abandoned the fixed exchange rate in favor of a floating exchange rate (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s, which lost the curency of norway of central bank around two billion kroner in defensive purchases of the NOK through usage of foreign currency reserves for a relatively short period of time.

In 1875, the Norwegian speciedaler was replaced by the krone, and the exchange rate was set at four kroner to one speciedaler. The krone was first introduced. As a result of this action, Norway became a member of the Scandinavian Monetary Union, which had been founded in the year 1873. Up until 1914, the Union remained intact. Following the breakdown of the currency union, Denmark, Norway, and Sweden all made the decision to maintain the names of their individual currencies, which have been operating independently since since.

The krone was pegged to the price of gold within the context of the Scandinavian Monetary Union at a rate of 2,480 kroner to 1 kilogram of pure gold (one krone was equal to 403.226 milligrams of gold). This gold standard was brought back between the years 1916 and 1920, and then it was brought back again in 1928. When a peg to the British pound was created in 1931 at a rate of 19.9 kroner to 1 pound, it was decided to permanently stop the practice. (Prior to this change, the exchange rate was 18.16 kroner for 1 pound.) In 1939, Norway implemented a temporary exchange rate that tied the Norwegian krone to the United States dollar at a rate of 4.4 kroner to 1 dollar. Despite this, the Kingdom's gold reserves will most likely continue to be held in Norway. basketball stars