The USD/NOK currency pair settled below recent high of 10.2021, its strongest level since June 2nd, as market players wagered that the Federal Reserve would likely lower interest rates more times and probably sooner than previously anticipated.

Annual core PCE inflation in the US picked up to 2.7% in May from a revised up 2.6% in April, data by the Bureau of Economic Analysis showed.

And, annual PCE inflation accelerated to 2.3% in May from a revised up 2.2% in April.

But, US consumer spending surprisingly dropped in May as the boost from the preemptive purchases of goods such as motor vehicles ahead of tariffs waned.

Markets are now pricing in about 65 basis points of rate cuts by the Federal Reserve by the end of this year, compared to 46 basis points a week ago.

In the meantime, media reports stated that US President Trump could announce his Fed Chair nominee as early as September or October, as he would likely favor a candidate who supports looser monetary conditions.

Elsewhere, the seasonally adjusted unemployment rate in Norway has risen to 4.6% in May from 4.4% in April. It has been the highest jobless rate since July 2021.

The number of unemployed individuals rose by 7,000 to 141,000, data by Statistics Norway showed.

The USD/NOK currency pair settled 0.06% lower at 10.0596 on Friday.

The exotic Forex pair lost 0.36% for the week.