2 Feb 2015
DKK appreciation to extends further – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Pernille Nielsen expects the Danish krone to gather further strength in the upcoming periods.
Key Quotes
“So far, EUR/DKK has traded with a heavy tone despite DN’s 45bp of rate cuts over the past two weeks”.
“Despite the announcement from DN that new issuance of government bonds will be suspended, we expect that the appreciation pressure on the DKK will continue as long as longer-dated Danish government bond yields trade above German yields”.
“Hence, we do not rule out further FX intervention and rate cuts from DN”.
Key Quotes
“So far, EUR/DKK has traded with a heavy tone despite DN’s 45bp of rate cuts over the past two weeks”.
“Despite the announcement from DN that new issuance of government bonds will be suspended, we expect that the appreciation pressure on the DKK will continue as long as longer-dated Danish government bond yields trade above German yields”.
“Hence, we do not rule out further FX intervention and rate cuts from DN”.