On the week of the EU Referendum, the Pound actually managed to make consistent gains against the Danish Krone, despite the fact that elsewhere Sterling’s losses have been pronounced due to concerns about the potential outcome of the vote.
The Krone’s value has been generally influenced by positive domestic sentiment reports and relative evaluations of national growth relative to other nations.
During its prodigious rise against the Krone this week, the Pound has risen from an initial 9.4666 in the exchange rate to 9.7522, the best level of the month so far.
Sterling Up against Danish Krone as Voting for ‘Brexit’ or ‘Bremain’ Continues
The Pound has made notable gains against the Krone lately, although in other pairings the UK currency has instead trended in a tight range or actually declined.
For the UK, the overriding issue is the EU Referendum, which has finally reached its crucial voting day.
Ahead of the final announcement of the results tomorrow morning, a number of last-minute polls and predictions have come out.
Many polling companies, including Survation, YouGov and Populus have predicted ‘In’ as winning, while against the trend, TNS and Opinium are of the opinion that an ‘Out’ vote will be dominant.
Sliding Euro Confidence Leaves Danish Krone in the Wind
In contrast to the Pound, the Danish Krone has been in a steady state of decline over the week, having moved in broad tandem with its pegged neighbour, the Euro.
Euro movements have been limited overall, on account of concerns that in spite of a number of signs pointing to a ‘Remain’ vote, a ‘Leave’ outcome in the Referendum may irreversibly damage the strength and cohesion of the single currency bloc.
In terms of Danish domestic data, consumer confidence in June has risen from 3.2% to 4.4%, while retail sales in May have fallen on the month and year to close to 0%.
In an additional raising of the stakes for the EU Referendum result, historic forecasts have been that Denmark may look to separate itself from the EU if the UK leaves, due to both nations currently supporting each other in negotiations with the EU.
Future GBP/DKK Exchange Rate Forecast
For the remainder of the current week, Pound Sterling/Danish Krone exchange rate movement may occur as a result of tonight and tomorrow’s EU Referendum results announcements, which are expected to begin shortly after eleven at night and come to a close at around seven in the morning.
Past estimates have been for the Pound to jump if ‘Remain’ win, while a massive drop off is on the cards should an ‘Out’ vote be in the majority.
This may also be the case for the Euro and by extension the Krone, with an ‘In’ vote holding the potential to quash Euroscepticism among political parties, or at least strengthen the idea of the multi-national union.
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