GBP/DKK Exchange Rate Rises Despite No Signs of Easing UK Lockdown Measures
The Pound to Danish Krone (GBP/DKK) rose by 0.2% today after Prime Minister Boris Johnson said in a TV statement that the UK is now ‘coming to the end of the first phase of this [coronavirus] conflict’. The pairing is currently trading around 8.540kr.
Furthermore, Boris Johnson was also upbeat about progress being made against the virus, despite urging lockdown measures remain in place for the time being.
Sterling investors reacted positively to news that the UK could be heading into its peak of the coronavirus crisis.
If there are any signs that the Government could ease lockdown measures, we could see the Pound continue to rise.
However, Health Minister Edward Argar, played down speculation of lockdown measures being eased off anytime soon, commenting:
‘We’re very clear at the moment the science isn’t saying we are ready to lift the restrictions that have been placed on people.’
‘We’ve made huge progress, we’ve seen that curve flattened in recent weeks … but we’re not there yet.’
As a result, the GBP/DKK exchange rate’s gains could be short-lived as investors continue to monitor the UK’s coronavirus developments.
Danish Krone (DKK) Falls as Danish Retails Plummet to 20-Year Low
The Danish Krone (DKK) fell today after March’s Danish Retail Sales report fell from 5.5% to -3.7%, the largest fall in Danish retail sales in 20 years.
— Shane Woodford (@WoodfordinDK) April 27, 2020
Furthermore, Statistics Denmark said that retail sales were expected to continue to fall.
Tore Stramer, the Chief Economist at the Danish Occupation, comments:
‘However, when it is said, then there will still be very poor figures for the Danes’ consumption. We will be in April and probably may see that it only goes slowly forward. But hopefully we have seen the worst of it.’
However, with retail sales increasing by approximately 20% compared to March last year, this has bought some relief to Danish markets this morning.
Instead Danish Krone (DKK) investors are focusing on tackling of the coronavirus crisis. If Denmark continues to ease off its lockdown restrictions, then we could see DKK rise.
GBP/DKK Forecast: UK Coronavirus Developments in Focus
Danish Krone (DKK) traders will be looking ahead to Thursday’s release of March’s Danish Unemployment Rate report. If this significantly falls below forecasts, then we could see the DKK/GBP exchange rate sink.
The GBP/DKK exchange rate will be sensitive to announcements from Downing Street this week due to a relatively empty UK data calendar. If the Government hints at easing lockdown restrictions, then we could see the Pound continue to rise.