Norway is not a member of the European Union and as such does not use the Euro currency. However, Norway collaborates closely with the rest of European Union through its membership in the European Economic Area (EEA). Norway is also a strong member of the European Free Trade Association (EFTA). The country uses the Norwegian Krone whose ticker symbol is NOK.

Given that Norway is the 5th most important EU import partner to the EU, it is easy to see why the NOK is important when it comes to foreign exchange markets and international trade. The United States, on the other hand, enjoys the strongest and the most dominant currency in the world. The USD/NOK pair even though likely, it is not popular because mainstream traders favour the USD/EUR pair.

Trading the Norwegian Krone

The Norwegian Krone which is sometimes referred to as the Kroner is only used in Norway. As we read from the Norskecasino.casino article, Norway is the sixth richest country in the world with a GDP per capita of $70,590. The country is the 3rd largest exporter of natural gas and 9th largest exporter of refined oil. The country has one of the largest budget surpluses in the world and this has led some people to consider the Krone as a safe-haven currency. The Krone is regulated by the central bank of the country, Norges Bank. Even though the currency is common in forex pairing it is considered by many to be a risky one because of the strong influence oil price shifts have on it.

The relationship between USD and NOK

The pairing of the USD/NOK shows the current value of the Norwegian Krone (NOK) in relation to the US dollar (USD). The currency is highly influenced by the performance of the oil market. However, it can also fluctuate because of interest rates at home, the performance of the fishing industry and major maritime changes.

The USD is affected by a number of factors among them manufacturing capacity, agriculture and high-tech machinery. Because the US has access to a considerable amount of natural resources, the USD often moves in forex trading as a result of the fluctuations in precious metal markets. Fluctuations in minerals such as tourmaline, coal, and granite affect the USD in FX markets.

The relationship between the USD and NOK will certainly be affected by the political developments in each of the countries. Investors are advised to particularly keep an open for any announcement coming from the Federal Reserve which gives the overall state of the US economy. Such announcements quite often do have a strong influence on the performance of the USD. The other thing that investors and traders are advised to check are the blue-chip indices in both Norway and the USA.

Prediction of USD/ NOK

As on 21st March 2018, a USD was going for 7.73 NOKs. The exchange rate between these two currencies has generally been around 1 USD/ 7.7 NOKs. However, a keen trader will certainly check the factors that might influence a shift in a currency before they enter a trade.

Lastly, it is worth noting that the Norwegian economy is quite turbulent in the international financial market. The main reason for this is that the Krone is considered by many to be a peripheral currency. When the market is highly volatile, traders tend to reduce the amount of NOK that they trade. This leads to the depreciation of the currency.

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