USD/NOK Times, reports, and more – A FX trading

USD/NOK is a forex pair representing the exchange rate between the US dollar and Norwegian krone. The current value of the forex pair is around 10.81.

Since it doesn’t involve only major world currencies, USD/NOK is classified as an exotic forex pair. Exotic pairs consist of one major world currency (USD, EUR, GBP, JPY, CHF, CAD, AUD, NZD), and one from an emerging economy. The word ‘emerging’ can be misleading—these countries often have high GDPs and standards of living. However, their small physical size limits their ability to compete economically with larger world powers.

The fact that USD/NOK is an exotic means it’s quite unique when compared to majors and minors. It’s less traded, leading to higher liquidity and spreads, and more likely to make significant moves. As such, it’s unsuitable for strategies that rely on very specific pricing and timing.

However, that doesn’t mean exotics are inherently worse than majors and minors. Namely, they are much more likely to make larger movements than more prominent pairs. As such, traders who are confident in their macroeconomic knowledge can use those larger moves to maximise profits.

This article will provide insight into FX trading procedures and considerations for the USD/NOK pair. This will include information on optimal trading times and methods, as well as resources commonly used to forecast the pair’s movement.

How to trade USD/NOK?

All forex trading, regardless of whether it’s a major, minor, or exotic pair, happens online. There’s no physical merchandise anywhere like, for instance, commodities such as gold or oil. You aren’t buying banknotes; forex trading is purely speculative.

The most accessible way is to find an online broker that has USD/NOK in its trading instrument library. This can be done here at IronFX, of course.

Regardless of which broker is chosen, there are two options: demo and live trading. With a demo account, it’s possible to practise trading USD/NOK without risking any financial loss, but also without the possibility of gaining anything either. Note that, on rare occasions, brokers don’t offer demo accounts. Choosing live trading typically means understanding the risks involved—putting personal funds on the line with the possibility of financial gain.

USD/NOK, like all forex pairs, is traded in lots, which represent 100,000 currency units. While that may sound intimidating, FX brokers offer traders an opportunity to buy smaller quantities like 0.001 lots.

Top trading times for USD/NOK

The forex market operates 24/5, but it’s no secret that some trading times are better than others performance-wise. Peak times offer a whole host of benefits, including increased volume, liquidity, and reduced spreads.

This allows traders to be more particular with their trades, as well as pay less for each individual trade. As such, trading within these sessions can lead to significantly better outcomes, even if nothing else in a trading strategy changes.

For instance, forex traders often rely on liquidity to place relatively precise trades. That’s already somewhat difficult since USD/NOK is an exotic pair, but it may prove nigh-impossible if accessed outside peak hours. This is because, even during active hours, its activity is far less significant than major and minor pairs. Outside these peak periods, the issue becomes even more prominent, and it can become very difficult to make even remotely close estimations about entry and exit points.

Here are the trading hours most traders recommend for USD/NOK:

• European Session (07:00–16:00 GMT): This session accounts for the time European markets are open, and that includes Norway. Trading activity for NOK peaks during this time, and usually this is when its reports drop.
• U.S. Session (12:00–21:00 GMT): The US session, sensibly, is when the USD trading scene is most active. This is also, globally, the most active trading time overall.
• European-U.S. Session Overlap (12:00–16:00 GMT): The overlap between these two sessions is what most traders consider peak hours for USD/NOK. It’s when both currencies are active, so trading volume and liquidity tend to reach their highest level.

Key reports for USD/NOK

Reports build a lot of tension in the forex market. Traders tend to try to predict their outcome and capitalise on the wave of energy released when the report comes out. Traders who want to optimise their FX trading times should, beyond trading within their assets’ sessions, track report release schedules and be ready to react to the market. Here are the key reports to track:

United States – Key USD reports

• Gross Domestic Product (GDP) – Bureau of Economic Analysis (BEA), quarterly
• Consumer Price Index (CPI) – Bureau of Labor Statistics (BLS), monthly
• Non-Farm Payrolls (NFP) – Bureau of Labor Statistics (BLS), monthly
• Federal Open Market Committee (FOMC) Statement – Federal Reserve, approximately every six weeks
• Trade Balance Report – U.S. Census Bureau, monthly
• Norway – Key NOK reports
• Gross Domestic Product (GDP) – Statistics Norway (SSB), quarterly
• Consumer Price Index (CPI) – Statistics Norway (SSB), monthly
• ​Unemployment Rate – Statistics Norway (SSB), monthly
• Monetary Policy Report – Norges Bank, quarterly
• Trade Balance Report – Statistics Norway (SSB), monthly

Non-report drivers for USD and NOK

The US political scene is quite public, even outside the country itself. As such, its policies and behaviour from prominent politicians can affect the price of the USD. Currently, for instance, tariffs are the main talk of the entire finance world and stand to shape the price of USD and many other assets, both nationally and internationally.

Traditionally, however, USD is a safe haven asset. That means that in uncertain times, people tend to buy USD to protect their portfolios. Recently, somewhat explosive political decision-making has brought USD’s safe haven status into question.

For NOK, oil prices are a significant thing to watch out for, as Norway is a significant oil exporter. Since it’s a smaller economy (as compared to major ones like the US or European Union), interest rate differentials are important to track.

In most exotics, however, the major currency takes precedence over the less prominent one. As such, shifts in the US may be much more impactful than those in Norway.

Avertissement :
Ces informations ne sont pas considérées comme un conseil en investissement ou une recommandation d'investissement, mais plutôt comme une communication marketing.