While the Pound managed to gradually advance against the Danish Krone over the course of last week, both the Pound and the Krone have been destabilised by domestic data at the start of a new week of trading. Previously, the Pound hit a high of 9.6922 against the Krone, having risen from a weekly low of 9.5333.
Sterling Softened Previously by Unsatisfying Ecostats
Last week saw little in terms of positivity for the Pound, as when the UK currency wasn’t being devalued by the stream of ‘Brexit’ stories, it was being reduced in appeal by the trio of disappointing PMI figures that were released between Tuesday to Thursday. These covered the nation’s construction, manufacturing, composite and services sectors.
Another noteworthy development was the declaration from British Chambers of Commerce Director General John Longworth that he was in support of the UK Referendum ‘Out’ campaign.
Sting in the Tail for BCC’s Longworth Today
The Pound has mainly been on a downtrend against the competition today, as in addition to having no direct economic announcements to rely on, the UK currency has also been softened by the latest ‘Brexit’ news.
As notable as Longworth’s show of allegiance was last week, it appears to have backfired spectacularly today, with the official finding himself out of a job after being forced to resign from his position. This is actually due to BCC policy not supporting political affiliations, but the situation sets an unnerving precedent for any future declarations of support for either side of the argument.
Danish Krone Fluctuates Following Mixed Economic Announcements
The appeal of the Krone varied last week. While the currency was supported initially by the preliminary Q4 GDP rising from -0.5% to 0.2% on the quarter and from 0.5% to 0.6% on the year, this was offset by a disappointing manufacturing PMI result that came later in the week.
Added on to this, foreign exchange reserves in February fell from 430.8bn to 421.5bn.
Today, the Krone has been dealt a mixed hand, as while annual industrial production has risen from -1.2% to 1.4%, the monthly printing has fallen from 2.8% to 2.5%.
This Week’s GBP/DKK Exchange Rate Forecast
For the present week, Pound Sterling/Danish Krone exchange rate movement may occur as a result of a tomorrow’s scheduled speech in the Houses of Parliament from Bank of England (BoE) Governor Mark Carney on the ‘Brexit’ situation, Wednesday’s January industrial and manufacturing production results and Thursday’s Danish January trade balance and February annual inflation rate figures.
Current forecasts are for improvement in the UK’s production stats, a rise in the Danish trade surplus and a fall in the inflation rate from 0.6% to 0.4%.