The Pound Sterling to Danish Krone (GBP/DKK) exchange rate took a dive following the announcement of the UK inflation rate but Sterling is currently enjoying a healthy rise against the Krone following the release of today’s Pound-centric data.
So far this week, Sterling has been moved the most by the UK CPIs for September and today’s variety of jobs data. With the former result (which came yesterday), the Pound was seriously hampered as the base and core inflation readings failed to match up with forecasts.
The monthly and yearly base figures both dropped into negatives by posting -0.1% apiece, while the core annual result held at 1% instead of rising to 1.1%. As a result of these disappointing outcomes, the Pound fell from 10.0869 against the Krone to 9.9615 in the space of a couple of hours.
However, the Pound has managed to turn this decline around entirely today, rallying against the Krone and a number of other competitors following the release of UK job data. The most beneficial of the releases have been the ILO Unemployment Rate for the three months to the end of August and the Employment Change for the same period. With the former posting, a drop from 5.5% to 5.4% occurred against expectations of no change; with the latter, a 140k person increase was recorded in the number of employed persons, something that supported Sterling immeasurably following its announcement.
However, not all of the day’s results went according to predictions; the Jobless Claims Change for September had been forecast to fall by -2.2k, but instead rose by 4.6k. Following the release of the last UK results of the week, the Pound Sterling has reached 10.0550 in the exchange rate against the Danish Krone today.
On the Danish side of things, the only release of the week has been the nation’s inflation rate for September which came on Monday – forecasts had been for 0.3% but the actual result came in at 0.5%.
Neither the UK nor Denmark have any data left to come this week; Denmark’s situation is especially bleak as no announcements are due until next Thursday. Therefore, for the rest of this week, Pound Sterling/Danish Krone exchange rate movement may occur as a result of Friday’s Eurozone releases, as well as any notable rises or drops in the value of the US Dollar. The Euro (and the Krone) may be moved on Friday by the Eurozone CPIs for September, which at the time of writing had mostly positive predictions assigned to them.
Regarding the US Dollar’s influence on the Krone in the GBP/DKK pairing, results are likely to come from Thursday’s US September CPI announcements along with Friday’s University of Michigan Confidence score for October. Mixed results are predicted for the main US inflation postings, while a minor rise has been forecast for the confidence score.