GBP/DKK Exchange Rate Flattens on Disappointing Danish Industrial Output
The Pound Danish Krone (GBP/DKK) exchange rate held steady today and is currently trading around 8.4630kr on the inter-bank market.
The Danish Krone (DKK) stabilised against the Pound (GBP) following the publication of the flash Danish GDP figures for the first quarter, which eased below expectations to 0.2% against the previous quarter’s 0.9%.
Danish unemployment for April, however, held steady at 3.1%, while the industrial outlook figures for May remained downbeat, at -2.
The Danish Krone, which is tied to the Euro (EUR), has remained generally steady as markets absorb the victory for Prime Minister Lars Løkke Rasmussen’s party in Sunday’s EU elections, however with next week’s general elections coming up, this has remained in focus for many DKK traders.
The Pound, meanwhile, has remained generally subdued following Theresa May’s comments during her last visit as PM to Brussels that her party’s failure to deliver Brexit was the cause of their catastrophic defeat by the Brexit Party in the EU elections.
GBP/DKK Exchange Rate Steadies as Questions Rise over Conservative Leadership
Sterling has failed to make any gains against many of its competitors today as the question of who will be the next Conservative leader is weighing on UK market confidence.
Fears are rising that hard-Brexiters and former Foreign Secretary Boris Johnson is fast becoming a favourite to replace Theresa May once she steps down on 7 June – thus exacerbating concerns of a no-deal Brexit.
Ian Lavery, the Chairman of the Labour Party, has also laid into second referendum campaigners, saying that they were “sneering at ordinary people”, stating:
‘It does feel that a certain portion of ‘left-wing intellectuals’ are sneering at ordinary people and piling on those trying to convey the feelings of hundreds of thousands of Labour voters. Perhaps, in reflecting on the results, we should consider the effect all of this has had.’
The increasing divisions within the major parties is causing a drag on Sterling, with the political confusion leaving many investors wary of the Pound.
GBP/DKK Outlook: Brexit and Conservative Leadership Contest to Remain in Spotlight
Danish markets will be closed tomorrow for the bank holiday, Ascension Day.
However, with the upcoming general election set to take place next week, DKK investors will be keeping a close eye on political developments.
Sterling traders, however, will be focusing on developments following the leadership contest, in which various Tory MPs step up for the position ahead of May’s leaving date.
Brexit developments will also remain in focus, and with any indications that a second referendum could gain traction on either side of the political divide, this could provide some uplift for the Pound as no-deal fears recede.