- Analytics
- News and Tools
- Market News
- EUR/DKK: More intervention, another rate hike likely – Danske Bank
EUR/DKK: More intervention, another rate hike likely – Danske Bank
Analysts at Danske Bank point out that the Danmarks Nationalbank (central bank of Denmark) made another FX intervention in December. They consider it needs to raise interest rates again by 10 basis points less than the European Central Bank early on February.
Central Bank of Denmark intervenes again
“Danmarks Nationalbank (DN) sold another DKK5.8bn in FX intervention in December to floor EUR/DKK around the 7.4360-65 level. It comes on top of the DKK3.7bn it sold in November and brings the total amount of FX intervention since it widened the policy rate spread to ECB in September to DKK9.5bn.”
“EUR/DKK still trades close to the 7.4360-65 floor, which means DN will likely need to make a move on the policy rate again. We expect it hikes 10bp less than ECB on 2 February, i.e. it hikes 40bp in response to a 50bp ECB hike, and widens the spread to -35bp.”
“Government deposits were DKK161.8bn in December – that is more than enough to cover the DKK128bn gross financing need in 2023.”
© 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
