GBP/DKK Exchange Rate Rangebound, Coronavirus Fears Weigh on European Currencies
The Pound Danish Krone (GBP/DKK) exchange rate held steady this morning, with the pairing currently trading around 8.918kr after Denmark’s year-on-year retail sales report for January rose from -0.5% to 2.7%
The Danish Krone (DKK) benefited from news that consumer spending had increased in the first month of 2020, further brightening to the economic outlook for the Danish economy in the near-term.
However, with China’s coronavirus outbreak set to disrupt the world’s second-largest economy in the first quarter, some Danish Krone traders are remaining cautious as this could also negatively impact the global trade-correlated Danish economy early this year.
This follows a report of a coronavirus outbreak in Europe, with Italy’s Venice Carnival on lockdown due to the largest spread of the virus in the bloc so far.
As a result, investors are remaining wary of European currencies today as uncertainty over the virus continues to influence traders to seek out safer currencies like the US Dollar.
GBP/DKK Exchange Rate Steady, No-Deal Brexit Fears Haunt UK Markets
The Pound (GBP) has been generally subdued against its peers today, with Brexit concerns weighing on market appetite for Sterling after the UK continues to appear to renege on pledges to Northern Ireland, risking possible trade deals with both the US and the EU.
Ireland’s ambassador to the EU, Bobby McDonagh, comments:
‘If UK [government] were to renege on its legal obligations under Brexit withdrawal agreement to protect Good Friday agreement, it would have many consequences. One would be the end of any prospect of a UK-US trade deal.’
The British economic outlook continues to darken as Pound investors are put off by increasing signs that the UK could leave the European Union without a deal later on this year.
Sterling traders will be looking ahead to today’s speech from the Bank of England’s Chief Economist, Andy Haldane. Any downbeat comments about the UK economy going forward, however, would prove Pound-negative.
GBP/DKK Outlook: Could Sterling Fall on Renewed Brexit Jitters?
The GBP/DKK exchange rate will be driven by political developments this week due to a generally quiet UK economic calendar. If the UK increasingly looks set to leave the UK without a deal in December this year, however, we could see the Pound begin to fall against its peers.
Danish Krone (DKK) investors, meanwhile, will be looking ahead to Thursday’s release of February’s Danish industrial outlook report. Any signs of improvement in Denmark’s factory sector would provide some uplift for the DKK/GBP exchange rate.