The USD/NOK currency pair was holding near recent high of 10.1295, its strongest level since December 22nd, as investors braced for the key US Non-Farm Payrolls report, which may provide fresh clues on the Fed’s monetary policy path.
Employers in all sectors of the US economy, excluding farming, probably added 60,000 job positions in December, according to market consensus, following a job growth of 64,000 in November.
And, the unemployment rate probably fell to 4.5% from 4.6%.
FOMC policy makers had signaled just one 25 bps rate cut for 2026, while investors continue to expect two or three rate cuts.
Meanwhile, in Norway, annual CPI inflation has picked up to 3.2% in December, the latest data showed, from 3% in November.
It has been the highest inflation rate since September, as prices rose at a faster pace for food and non-alcoholic beverages, transport, housing and utilities, recreation and culture, health, as well as restaurants and hotels.
Norway’s annual inflation adjusted for tax changes and excluding energy products (CPI-ATE) has accelerated to 3.1% in December.
Inflation has remained well above Norges Bank’s target, which suggests a restrictive monetary policy is still necessary.
Norges Bank left its key policy rate without change at 4% at its December meeting, while indicating no rush to lower rates.
Yet, the central bank said it projected one or two rate cuts in 2026.
The USD/NOK currency pair was last up 0.21% on the day to trade at 10.0874.
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