GBP/DKK Exchange Rate Rises as UK Hits Covid-19 Vaccine Milestone

Pound to Danish Krone Exchange Rate Heads Higher as UK Achieves 15-Million Vaccinations

The Pound to Danish Krone exchange rate rose by 0.4% today after the UK Government hit its target of 15-million vaccinations. The pairing is currently trading around 8.52kr.

Sterling rose against many of its peers today after the UK reached a milestone in offering the Covid-19 vaccine to 15-million people.

Now the UK Government is set to reveal its next phase of vaccinations.

Prime Minister Boris Johnson also announced that there is a forthcoming plan to ease the UK’s Covid-19 lockdown restrictions which will aim to be both ‘cautious but irreversible’.

Mr Johnson said to various broadcasters in Kent:

‘The dates that we will be setting out will be the dates by which we hope we can do something at the earliest, if you see what I mean – so it’s the target date by which we hope to do something at the earliest.

‘I think people would much rather see a plan that was cautious but irreversible and one that proceeds sensibly in accordance with where we are with the disease.’

As a result, GBP investors are now more optimistic that the UK could be seeing its final coronavirus lockdown.

News of easing lockdowns has also buoyed confidence in the nation’s economic recovery. The Government is also now set to move onto the next phase of Covid-19 vaccinations.

Danish Krone Subdued Despite Denmark’s Low-Rate of Covid-19 Infections

The Danish Krone fell against the Pound today despite Denmark sustaining a relatively low-rate of Covid-19 infections.

However, DKK traders are cautious as the UK-variant of the coronavirus has been found in Denmark.

Eskild Pedersen, a professor of infectious disease at Aarhus University, commented:

‘The number of new infections has fallen and that is good. It shows that we are still reducing the number of new cases and that is important in light of the more infectious British variant [B117, ed.], which now comprises around 30 percent of infection.’

As a result, the outlook for Denmark’s economy remains uncertain, as the new variant could present a reason to further extend lockdowns and restrictions nationwide.

Denmark’s vaccination programme has also been hampered by delays on deliveries from all three companies supplying the country – AstraZeneca, Pfizer, and Moderna.

Consequently, Danish markets are becoming increasingly jittery over the prospect of further delays, which would only further delay the nation’s economic recovery.

Could Weak Danish Consumer Confidence Drag Down the Danish Krone This Week?

The Danish Krone will remain sensitive to Denmark’s Covid-19 developments this week. Any further delays in Covid-19 vaccines would prove DKK-negative.

In Danish economic data, Thursday will see the publication of February’s Consumer Confidence report. If this downbeat, however, we could see the DKK/GBP exchange rate continue to fall.

Pound traders will be looking ahead to Wednesday’s publication of the Consumer Price Index for January.

If this points to an improvement in the outlook for Britain’s economy, then we would see Sterling benefit.  

The GBP/DKK exchange rate could continue to head higher this week if the UK’s Covid-19 vaccination programme remains on schedule.

David Moore

Contact David Moore

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