The Canadian dollar (CAD) is currently range-bound against the Danish krone (DKK).
Key drivers include:
- The Bank of Canada has held its interest rate steady at 2.25%, supporting the CAD amid signs of strong job growth and retail sales.
- Oil prices have shown signs of volatility, dipping below recent averages, which may weigh on the CAD since it is closely tied to oil market performance.
- The Danish krone remains stable due to lower wage growth and sustained inflation projections from Danmarks Nationalbank, bolstering confidence in the currency.
The CAD/DKK exchange rate is expected to fluctuate within a modest range over the next few months. Upside risks could arise from a stronger-than-expected rebound in Canadian retail sales, while a significant decline in oil prices could exert downward pressure on the CAD.