The Pound has risen by 0.3% against the Danish Krone today but remains down on its weekly highs.
Pound Krone Update: Last Prime Minister’s Questions (PMQ) sees PM Stress Brexit Credentials
Sterling has cautiously advanced against the Krone on a slow data day, with the final pre-election PMQ session proving influential.
Spectators were divided on who ‘won’ the final debate, with Jeremy Corbyn testing the PM on pensions and Theresa May rerouting answers to criticise prior Labour governments.
A recurrent theme was May’s assertion that she was the best choice, stating that every vote for the Conservatives would strengthen her hand in Brexit negotiations.
As the Conservatives are forecast to win decisively, this declaration raised the Pound’s value.
Danish Krone Lifted by Euro Pegging and Strong Sales
The latest Krone to Pound movement has been negative, but the Danish currency remains close to a weekly high against Sterling.
This comes after a Euro surge on April 24th, caused by Emmanuel Macron reaching the final of the French Presidential Election.
The Krone is pegged to the Euro, which means a high-value Euro will also pull up the Krone.
Recent Danish domestic data has also supported the Krone; Denmark’s retail sales in March have risen on the month and year.
The annual result has been particularly positive with a rise from -3.1% to 2.6%.
GBP/DKK Exchange Rate Forecast
For the rest of this week and the next, Pound/Danish Krone exchange rate movement may occur as a result of Friday’s UK confidence and GDP figures, along with a trio of UK Purchasing Manager Index (PMI) results from May 2
to May 4
The Pound may drop against the Krone on Friday if the GfK consumer confidence score falls as forecast.
The high-impact GDP results could increase any Pound to Krone losses, especially if GDP growth slows by more than predicted.
Economists have predicted that rising inflation and slowing wage growth could reduce UK economic activity. This would have a negative impact on GDP growth, which could erode the Pound’s value.
Next week’s UK PMIs will show activity in the manufacturing, construction and services sectors. If figures drop close to 50 (anything under 50 indicates contraction), the Pound may fall against the Krone.
Danish economic news on the weekly radar will include business confidence and unemployment on Thursday and Friday. Next week’s main data will be a manufacturing PMI on Monday.
No forecasts have been made, but Danish confidence previously fell, so a substantial rise may cause some Krone appreciation.
As always, the cost of Brent Crude oil may also influence the Krone. If prices rise significantly then the Krone could be pushed up against the Pound.