The Pound Sterling to Danish Krone (GBP/DKK) exchange rate fell to a low of 9.9780 on Monday after dipping 0.2% on the day’s opening levels following the publication of Danish trade data.
The Krone failed to perform as well against the Euro however, with the DKK/EUR exchange rate edging slightly lower over the course of the European session despite ongoing Grexit concerns.
Last week the Danish Krone steadily declined against the Pound as demand for the British asset was supported by surprisingly strong Manufacturing, Construction and Services PMI’s for the UK.
With all three main facets of the UK economy outperforming expectations at the beginning of the year, the possibility of the Bank of England (BoE) increasing interest rates in 2015 became slightly less remote and the Pound accordingly advanced on the majority of its most-traded currency counterparts.
Danish data also beat expectations, with the pace of both monthly and annual industrial production exceeding estimates in December. However, as the figures for November were negatively revised, the Krone failed to derive much benefit from the report.
Friday’s less-than-spectacular UK trade data did limit the Pound’s uptrend, and bets that this week’s BoE quarterly inflation report will reference consumer prices falling into negative territory this year saw Sterling slip on Monday.
The GBP/DKK currency pair moved fluctuated between 10.0410 and 9.9780 amid a dearth of UK data and BoE CPI expectations.
Danish data published on Monday was mixed, with the nation’s trade surplus failing to widen as expected but the current account surplus narrowing by less-than-feared.
Denmark’s trade surplus was forecast to widen from a revised 3.3 billion Krone in November to 5.8 billion Krone in December, but it was actually unchanged.
Meanwhile, the nation’s current account surplus was believed to have dropped from a revised 36 billion Krone to 9.8 billion Krone at the close of 2014. The surplus instead narrowed to 12 billion Krone.
The Danish currency continued trading in a slightly weaker position against the Euro after the report was published as demand for the common currency increased following the release of unexpectedly strong German trade and Eurozone confidence figures.
In the week ahead, the Danish Krone could fluctuate in response to the publication of Denmark’s inflation data.
The pace of consumer price gains is believed to have slowed from 0.3% on the year in December to 0.22% in January.
Of course, fluctuations in the GBP/DKK exchange rate are also likely to occur in response to Tuesday’s Industrial/Manufacturing production reports for the UK and the nation’s GDP estimate for the three months through January. Further solid UK ecostats could drive the Pound higher.
The Euro to Danish Krone currency pair, however, is more likely to experience volatility as a result of the ongoing Greek debt negotiations.
The Pound Sterling to Danish Krone (GBP/DKK) exchange rate was trading in the region of 10.0060 on Monday.