- Analytics
- News and Tools
- Market News
- EUR/DKK: Significant FX intervention in December – Danske Bank
EUR/DKK: Significant FX intervention in December – Danske Bank
The central bank of Denmark presented its December numbres. Analysts at Danske Bank point out the Danmarks Nationalbank (DN) resumed intervention with the second highest monthly purchases ever.
Key Quotes:
“The big news in today's release was the significant FX intervention that took place in December. It was the second highest monthly FX intervention purchase on record only surpassed by the rally into DKK in January 2015. We have been arguing that DKK strength in December and subsequent need for FX intervention was mainly due to year-end tightness in the DKK money market. The size of the inflow to the FX reserve means it was likely coupled with investor rebalancing flows.”
“The large inflow to the FX reserve will likely fuel speculation that another unilateral rate cut is coming in Denmark. However, we do not want to rush to conclusion.”
“Downwards pressure on EUR/DKK spot has eased to start the year and if the need for intervening in FX markets has ended for now, DN will probably draw the same conclusion as us and stay put on interest rates. Hence, we stick to our view that DN will keep policy rates unchanged despite the sizeable FX intervention in December.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
