EUR/DKK: Temporarily higher – Danske Bank

EUR/DKK seems to have settled around the 7.4660-80 level after the recent tightening of monetary policy and stabilisation of global equity markets, as analysts at Danske Bank note.

Key quotes

“Higher policy rates and tighter liquidity conditions have pushed EUR/DKK FX forward points out to 1M above zero and 3M closer to zero.”

“Hence, should equity markets continue to rebound there is grounds for a move lower in EUR/DKK.” 

“In the short term, Novo Nordisk will pay dividends (ex-date tomorrow), which normally tends to push EUR/DKK temporarily higher.”