With a complete absence of Danish economic data over the past week, the Krone has been subject to changes in the currency market. A general declination can be attributed to the currency tracking Euro losses as geopolitics weighs on investor confidence.
In the last week the Danish Krone was trending within the range of 0.0955 to 0.0970 against the Pound Sterling.
The Krone has a close relationship with the single currency, which makes it sensitive to Euro movement. The well documented geopolitical issues in Greece have caused the shared currency to soften considerably over the past few weeks. This has rubbed off on to the Krone, which has been trending lower without any domestic data to provoke changes.
The Krone has held relatively steady versus the Pound over the past week or so, however, the British general election is having a detrimental effect on demand for the Pound amid political uncertainty.
Wednesday saw the Danish Krone to Pound Sterling (DKK/GBP) exchange rate soften as Euro losses micrified relatively positive Danish economic data results. The Pound also gained from hawkish minutes from the Bank of England’s (BoE) most recent policy meeting.
April’s Danish Consumer Confidence ticked lower from 13.9 to 13.7, but did avoid the median market forecast of declination to 11.81.
On the year, March’s Retail Sales improved by 2.7%; eclipsing the market consensus of a 2.38% increase. March’s Retail Sales advanced by 0.5% on the month, once again bettering the median market forecast figure of 0.29% growth.
‘Denmark retail sales grew in March after falling in the previous month, led by better sales in clothing and consumer goods, and consumer confidence remained largely unchanged in April, figures from Statistics Denmark showed Wednesday’, stated RTT News. ‘Households’ view on their future financial situation improved for a third month with the index climbing to 17.4 from 17.1. Their expectations on the country’s economic situation in a year eased slightly and the index dropped to 25.3 from 25.6.’
Next week will see Danish Unemployment Rate data. Joblessness is forecast to drop from 4.9% to 4.2% in March.
With a lack of domestic data to provoke changes for the remainder of the week, the Krone will be subject to single currency changes. Therefore, it is relatively safe to assume that the Krone will soften in line with Euro weakness.