#EURDKK @ 7.43908 to rise, although only just above 7.4400 – Danske Bank
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Economists expect EUR/DKK to rise slightly and likely just enough to break the 7.4400 level after central banks announcements on Thursday.
“We expect Danmarks Nationalbank (DN) to hike 10 bps less than ECB on Thursday and widen the spread to -35 bps.”
“It is a 50/50 event whether DN follows ECB or not according to the market. Hence, if we are right, we expect EUR/DKK to rise, although only just above 7.4400.”
“FX forwards should drop if DN hikes 10 bps less. A further rise in EUR rates on a hawkish ECB would slightly mitigate the effect.”
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