USD/NOK settles below 1-week high, posts small weekly loss

The USD/NOK currency pair settled below recent high of 10.0248, its strongest level since September 26th, after data showed US services sector activity had unexpectedly stalled in September.

The ISM Services Purchasing Managers’ Index dropped to 50.0 in September from 52.0 in August.

The latter came after earlier data by ADP showed US private payrolls had decreased by 32,000 in September following a revised down 3,000 drop in August.

The ongoing US government shutdown hampered public economic activity, risked job cuts and delayed crucial economic data, including the Non-Farm Payrolls report, ahead of the upcoming Federal Reserve policy meeting.

Markets are now pricing in about a 98% chance of a 25 basis point Fed rate cut in October and an 87.5% chance of another 25 bps cut in December.

Meanwhile, the number of people registered as out of work in Norway went up to a seasonally adjusted 64,400 in September from a revised 64,300 in August.

It has been the highest number since January 2022, data showed.

The exotic Forex pair lost 0.14% for the week.