The USD/NOK currency pair lost ground on Monday, as market players awaited the key US CPI inflation data, due on Tuesday, that may provide further clues over the Federal Reserve’s monetary easing path.
Annual core CPI inflation probably picked up to 3% in July, according to market consensus, from 2.9% in June.
Markets are now pricing in a 90% chance of a 25 basis point rate cut in September amid signs of a weakening labor market.
Meanwhile, the latest data out of Norway showed that annual consumer price inflation had picked up to 3.3% in July – the highest rate since February, from 3% in June.
Norway’s annual inflation adjusted for tax changes and excluding energy products (CPI-ATE) remained stable at 3.1% in July.
The data suggested that Norges Bank might have limited scope to cut interest rates further this year.
The USD/NOK currency pair was last down 0.42% on the day to trade at 10.2434.
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