USD/NOK settles below 2-month high, posts weekly gain

The USD/NOK currency pair settled below recent high of 10.3464, its strongest level since May 19th, in the wake of solid US macro data.

US retail sales growth was stronger than expected in June, 0.6% month-over-month, while initial jobless claims dropped more than expected in the week ended July 12th.

Annual CPI inflation accelerated to 2.7% in June, or the highest rate since February, from 2.4% in May.

And, annual core inflation picked up to 2.9% in June from 2.8% in May.

The data suggested tariffs were beginning to have an impact on inflation and likely prompting the Federal Reserve to leave borrowing costs on hold until September.

Markets are now pricing in about 45 basis points of interest rate cuts by the Fed by year-end.

Market players also continued to keep a close eye on trade negotiations.

The exotic Forex pair gained 0.39% for the week.