The Pound (GBP) steadily rose against the Danish Krone (DKK) this morning as the chief of a leading bank forecast that the institution would remain in the UK after ‘Brexit’.
Pound Rebound’s as Barclays Chief Confident About Remaining in London
The Pound saw an uptick this morning as Barclays chief executive Jes Staley said in an interview that he was confident that London would retain its status as the financial centre of Europe despite plans to leave the EU, saying;
‘I don’t believe that the financial centre of Europe will leave the city of London. There are all sorts of reasons why I think the UK will continue to be the financial lungs for Europe.’
While he admitted that some parts of the bank’s operation may have to move abroad, he believed that the majority of its European banking arm could remain in the UK.
Staley also confirmed that various other European capitals had been attempting to lure the bank abroad following the UK’s vote to leave the EU.
‘It’s very interesting that one minute no-one wants bankers in their backyard, the next they are inviting you over to a barbecue.’
This follows remarks from HSBC chief executive Stuart Gulliver on Wednesday, who warned that its entire trading division -which accounts for 20% of its revenue- and hundreds of staff could be moved to Europe following ‘Brexit’.
The comments are largely in reaction to fears that London may have to give up its EU financial passporting rights once the UK leaves the EU, preventing banks in the City from clearing the Euro.
Danish Krone Slides as Concerns over European Populist Rise
The Danish Krone peg to the Euro (EUR) caused it to deprecate today as investors grow increasingly concerned about the state of the Eurozone amid the recent surge of populism across the continent.
Recent polls in the Netherlands and France both shows that support for the far-right Eurosceptic parties of Geert Wilders and Marine Le Pen increased in the week following Donald Trump’s shock victory in the US presidential elections.
Traders are concerned that current EU leaders are continuing to dismiss these parties as part of fringe politics and are not adapting their approach to engage with the millions of disillusioned voters who helped usher in the political upsets of ‘Brexit’ and Trump in 2016.
GBP DKK Forecast: Both Markets release Retail Sales Data on Friday
The Pound Danish Krone exchange rate may extend its gains tomorrow as the UK releases its latest retail stats, with sales predicted to have surged from 6.6% to 7.6% in December as consumers sought to make purchases ahead of expected price hikes in early 2017.
Meanwhile Denmark’s retail sales are predicted to show a more modest rise from 2.6% to 2.9% over the same period potentially strengthening the Krone against Sterling’s advances.