Since mid-March, the Danish krone has been strengthening markedly against the euro. Currently, EUR/DKK is trading around 7.445. Despite this, the Danish central bank has not yet intervened. However, unless excess liquidity starts to pick up, the bank could start to sell krones as soon as EUR/DKK drops below 7.440. Key quotes “Given the large interest rate spread, we find it likely that the Danish krone will continue to appreciate, thereby increasing the likelihood of the Danish central bank starting to sell DKK. We expect this to happen if EUR/DKK goes below 7.440.” “If the bank starts to intervene in the FX market, this would bring some much-needed liquidity to the Danish money market. However, as the ECB will most likely continue to increase excess liquidity in the Euro-area, this intervention from the Danish central bank will not necessarily be enough to reverse the current downward pressure on EUR/DKK.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next BCB Preview: Hints of unorthodox monetary policies to weigh on the real – TDS FX Street 2 years Since mid-March, the Danish krone has been strengthening markedly against the euro. Currently, EUR/DKK is trading around 7.445. Despite this, the Danish central bank has not yet intervened. However, unless excess liquidity starts to pick up, the bank could start to sell krones as soon as EUR/DKK drops below 7.440. Key quotes “Given the large interest rate spread, we find it likely that the Danish krone will continue to appreciate, thereby increasing the likelihood of the Danish central bank starting to sell DKK. We expect this to happen if EUR/DKK goes below 7.440.” “If the bank starts to intervene in… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
