Pound Sterling Danish Krone (GBP/DKK) Exchange Rate Muted on Weak Danish Inflation
The Pound Sterling Danish Krone (GBP/DKK) exchange rate remained flat, leaving the pairing trading at around 8.8088Kr.
The Danish Krona edged lower on Monday after data revealed the country’s annual inflation rate slipped to 0.7%.
January’s inflation rate saw softer gains for housing and utilities, food and non-alcoholic beverages, and recreation and culture.
Meanwhile, further data showed that Denmark’s trade surplus rose to 9.7 billion DKK in November from 6.4 billion DKK.
The Krone was left flat after weak inflation offset the 2.8% increase in exports.
Danish exports jumped thanks to a 512.8% increase in sales of vessel and aircraft.
Sterling (GBP) Flat as Markets Focus on UK-EU Trade Deal
The Pound remained flat against the Krone as there was little data or news to drive the British currency. This left GBP to take cues from broader market trends.
Commenting on this, Lee Hardman, MUFG currency analyst stated:
‘Market participants are becoming more concerned about economic growth outside the U.S., boosting the relative appeal of the Dollar.
‘In the UK, recent data points to a pick up in growth which is good for the Pound but that is being set of by concern over a trade deal.’
The end of last week saw GBP suffer losses, as investors continued to fret about a trade deal between the UK and European Union.
With just 11 months for a trade deal to be reached, tensions intensified after Prime Minister Boris Johnson took a tough stance against the bloc.
Pound Danish Krone Outlook: Will Weak GDP Weigh on GBP?
Looking ahead to tomorrow, Sterling (GBP) will slump against the Danish Krone (DKK) if UK flash GDP disappoints.
If preliminary Q4 GDP stagnates or slumps, the British currency will slide.
Meanwhile, the pairing will slide further following the release of British business investment data.
If data reveals that investment plummeted further than expected in the final quarter of 2019, the Pound Danish Krone (GBP/DKK) exchange rate will fall further.