GBP/DKK Exchange Rate Flat as Brexit Jitters Return Ahead of Tory Leadership Announcement
The Pound Danish Krone (GBP/DKK) exchange rate is currently fluctuating around 8.295Kr.
The Pound (GBP) was flat against the Danish Krone (DKK) this morning ahead of the announcement of the next British Prime Minister.
As Brexiter Boris Johnson is the favourite to succeed Prime Minister Theresa May, this has caused many Sterling traders to become jittery on heightened no-deal Brexit fears.
Mr Johnson has previously said that the UK would leave the European Union on 31 October ‘do or die’, so with today’s likely victory the Pound has struggled against many of its competitors.
William Hague, a Former Leader of the Tory Party, commented:
‘The ‘do or die’ approach to Brexit by October 31 is counter-productive… [And a] government whose main policy is opposed by Philip Hammond, an accomplished chancellor; David Gauke, an excellent justice secretary; and Rory Stewart, one of the best hopes for the future, is in near-terminal trouble from its first hour.’
Sterling traders will be awaiting a speech by Andrew Haldane, the Bank of England’s Chief Economist, later on this afternoon.
Any dovish comments about the UK’s economy or Brexit would normally prove a drag on Sterling but investors will be focusing on political developments today.
DKK/GBP Exchange Rate Rangebound as Danish Consumer Confidence Sinks in July
The Danish Krone (DKK) remained steady against Sterling following today’s release of the Danish consumer confidence figure for July.
This fell to 2.9, half of June’s 5.8 and the lowest level since December 2018.
The monthly survey also indicated that confidence had fallen in Denmark’s economy in a year.
Respondents to the survey came in overwhelmingly pessimistic about the economy this month, falling to -4.1 from June’s more upbeat 3.5.
Louise Aggerstrom Hansen, an Economist at Danske Bank, was also downbeat, saying:
‘We need to go as far back as 2012 to find a period where Danes had a more negative view on the Danish economy over the following year. There is no doubt that the worsened outlook for the international economy has made us less optimistic about how the Danish economy will fare.’
GBP/DKK Outlook: UK Political Developments to Remain in Spotlight
Looking ahead, Pound Danish Krone (GBP/DKK) movement is likely to be dictated almost entirely by UK politics for the rest of the week.
As Boris Johnson is expected to step up, Brexit jitters may escalate, and we could see the Pound continue to edge lower.
Danish Krone traders, meanwhile, will be looking ahead to Friday’s release of the year-on-year Danish retail sales figures for June.
The GBP/DKK exchange rate is likely to become subject to volatility this week on the likely victory of Boris Johnson, with increased no-deal Brexit fears likely to provide downwards pressure on Sterling.