EUR/DKK: Trading around 7.4730 without surprises – Danske Bank

Regarding Thursday’s ECB meeting, economists at Danske Bank think the ECB will keep its policy rate unchanged, therefore, the EUR/DKK pair should trade around 7.4730. Now, the pair is trading at 7.4676.

Key quotes

“In our base case, where the ECB keeps its policy rates unchanged on Thursday, we expect EUR/DKK to trade back up to around 7.4730.”

“Should the ECB cut the deposit rate, it is a close call whether DN would follow or not, but we are inclined to expect DN to keep rates unchanged. In this case, we would expect limited movement in EUR/DKK spot.”

“In the bigger picture, weak equity markets and falling USD/DKK exposes DKK weak spots.”