The Pound has made slight gains against the Danish Krone recently, but the pairing could experience volatility in the near future.
The latest Danish news has proven disappointing, showing slowing levels of production and a shift closer to a trade deficit.
Last week, the Pound fell notably against the Krone, starting at an initial rate of 8.72 on Monday before falling to a low of 8.60 on Friday.
Pound Demand Tied to ‘Brexit Bill’, Gains against Krone come Against the Odds
The Pound has risen by a small amount against the Danish Krone today, following a day of high volatility on Tuesday due to Brexit-linked developments.
The main focus was on the Article 50 bill, which passed through the initial committee state unaltered.
Discussions about the bill also raised serious concerns about the ending days of the UK’s membership of the EU; Brexit Secretary David Jones stated that if a good deal could not be reached and approved, the UK would exit the EU regardless of the consequences.
When questioned on the matter, Theresa May deflected the question and instead responded that;
‘[We will] ensure we negotiate a deal with the European Union that enables us to have the best possible deal in trading with and operating within the European Union’s single market in goods and services’.
Disappointing Industrial Results Weaken Danish Krone
For the Krone, the latest domestic data has contributed to its decline; as well as December’s industrial production figures falling on the month and the year, the trade balance for the same month has also worsened.
While it did not fall into a negative range, the surplus reduction from 5.3bn to 3.8bn still represented a poor movement for the figure and a shrinking current account in December also contributed to negative investor sentiment.
GBP/DKK Exchange Rate Forecast
For the rest of this week and the week to come, Pound/Danish Krone exchange rate movement may occur as a result of Friday’s UK trade balance, production and GDP estimate figures, as well as inflation and jobs stats on February 14
th
and 15
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.
For the production figures, annual rises in December are forecast along with monthly drops; this could prove a net positive for investors in the Pound.
Notable Danish news is not expected until February 20
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, when a consumer confidence score for February will start of the week’s news.