GBP/DKK Exchange Rate Flat, UK Markets Cautious on General Election Risks
The Pound Danish Krone (GBP/DKK) exchange rate held steady today, with the pairing currently trading around 8.650Kr after Prime Minister Boris Johnson failed to secure a two-thirds majority vote for a general election on December 12.
UK markets remain cautious as Johnson prepares to pursue a fourth attempt today, this time using a short bill which requires a simple majority. Downing Street’s hopes are now largely reliant on support from the Liberal Democrats and the Scottish National Party (SNP), both of which have signalled their interest in an election.
Mr Johnson said:
‘We will not allow this paralysis to continue, and one way or another we must proceed straight to an election. The government will give notice of presentation for a short bill for an election on 12 December so we can finally get Brexit done. This House cannot any longer keep this country hostage.’
If the Prime Minister can secure a majority and trigger a general election, the Pound (GBP) could fall on heightened political uncertainty.
In UK ecostats, today saw UK consumer credit for September hit a 5-year low from £0.969 billion to £0.828 billion, with consumers holding back in the face of mounting Brexit uncertainty.
DKK/GBP Exchange Rate Rangebound on ‘Ahead of Schedule’ US-China Trade Talks
The trade-sensitive Danish Krone (DKK) held steady today after US President Donald Trump announced that US-China trade talks were “ahead of schedule”, bolstering hopes for a November trade deal between the two superpowers.
Randy Frederick, Vice President of Trading at Charles Schwab, commented:
‘Most of the things that have been worrying markets haven’t necessarily been resolved, but the concern about them has waned a little bit. In general, it is more of a lack of bad news than it is an abundance of good news.’
With no Danish ecostats due today, DKK traders will focus on geopolitics, with Brexit and ongoing US-China trade developments dominating the spotlight.
Any deterioration in the US-China relationship will dampen hopes for a November resolution to the drawn out trade dispute, with negative connotations for the DKK/GBP exchange rate.
GBP/DKK Outlook: Could Sterling Sink on General Election Fears?
Brexit developments will remain in focus this week, with the GBP/DKK exchange rate likely to ease if Boris Johnson secures a majority vote this evening.
In terms of UK data, tomorrow’s BRC shop price index will provide some indication of inflationary pressure in the UK economy.
Meanwhile, Danish Krone investors will look ahead to tomorrow’s Danish industrial output figure for October, with an improvement likely to uplift the Danish currency.