USD/NOK eases from near 5-year high, US CPI data eyed

The USD/NOK currency pair eased from a recent peak of 11.5302, its highest level since March 2020, on Wednesday ahead of the essential US CPI inflation data that could provide further clues over the Federal Reserve’s monetary easing path.

Annual headline consumer inflation in the US probably picked up to 2.9% in December, according to market consensus, from 2.7% in November.

Annual core CPI inflation probably steadied at 3.3% in December.

A surprise to the upside could further limit the scope for the Federal Reserve to reduce interest rates.

Investors also remained focused on US President-elect Donald Trump’s return to the White House later this month and his policy plans, including tariffs, which are considered as inflationary.

Meanwhile, in other data, Norway’s trade surplus has expanded to NOK 83.2 billion in December from NOK 77.3 billion in the same month of 2023.

The nation’s total exports went up 8.4% YoY to NOK 169.1 billion, while total imports rose 9.3% YoY to NOK 85.9 billion.

The USD/NOK currency pair was last edging down 0.21% to trade at 11.3460, as the US Dollar rally paused ahead of US CPI test.