Pound to Danish Krone Exchange Rate Rises as Danish Consumer Confidence Falls in January

GBP/DKK Exchange Rate Sinks as Fears Grow Over Danish Lockdown Extension

The Pound to Danish Krone exchange rate rose by 0.2% today, with the pairing currently trading around 8.41kr.

The Danish Krone struggled today following this morning’s release of January’s Danish Consumer Confidence report, which fell from -3.8 to -4.1.

The DKK/GBP exchange rate has suffered because of uncertainty around Denmark’s economic recovery.

This week also saw the Danish Prime Minister, Mette Frederiksen, hint at an extension to the nation’s lockdown despite falling cases of the coronavirus.

‘The situation is so serious that we can easily envisage a need to extend parts of the restrictions we have, even now, because we’re at a critical point.

‘At the same time, we are rolling out vaccines as quickly as we possibly can. Around three percent of Danes [have received the first dose], that is the highest proportion in the EU, and we are doing what we can to get more vaccines released faster.’

However, Denmark’s substantial rollout of Covid-19 vaccines, making it one of the leaders in Europe, has given a boost to confidence in the nation’s economic recovery.

Pound Rises as UK Covid-19 Vaccine Hopes Buoys Confidence in British Economy

Sterling rose today as global markets were uplifted by the US Presidential Inauguration.

The 46th President of the US, Joe Biden, expected to announce substantial stimulus measures to boost the American economy.

As a result, markets are hopeful that this will have a knock-on effect and boost the global economic situation.

Lee McDarby, managing director of UK international payments at MoneyCorp, explains:

‘In the UK, the fast vaccination rollout currently underway could provide a much-needed lift to the UK economy, spurring a surge in the pound. When it comes to the US dollar, many forecasters are predicting a large sell off should the vaccine be successful. This move to risk on would open the door to safe haven selling.’

GBP investors are also hopeful that the UK’s formidable Covid-19 vaccination programme could help the UK economy recover in the months ahead.

Today also saw Gavin Williamson, the Secretary of State for Education, announce that he hopes that schools would reopen before Easter.

Consequently, GBP investors have reacted positively in the new sin the hope that this could also signal a steady reopening of the British economy.

Pound to Danish Krone Forecast: Could Denmark Face an Extended Lockdown?

Pound traders will be looking ahead to tomorrow’s release of the flash UK Services PMI. If this shows an uptick in the UK’s largest sector, then we would see Sterling head higher.

Tomorrow will also see the release of the latest UK GfK Consumer Confidence for January.

If consumer morale falls, however, we could see Sterling shed some of its gains against the Danish Krone.

The GBP/DKK exchange rate could head higher if the Danish PM announces an extension to Denmark’s lockdown.

David Moore

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