CAD/DKK Outlook: Slightly weaker, but likely to move sideways as the rate is below its recent average and near recent lows, lacking a clear directional driver.
Key drivers:
• Rate gap: The Bank of Canada recently cut interest rates, which may weaken the CAD against the DKK as Danmarks Nationalbank keeps its rate steady, reflecting stability.
• Risk/commodities: With oil prices currently above their 3-month average, the CAD is better supported, but ongoing volatility could limit significant movements.
• One macro factor: Upcoming Canadian economic data, particularly on trade and employment, could impact CAD performance if stronger results emerge.
Range: The CAD/DKK rate is likely to hold within its recent range, potentially drifting without major news.
What could change it:
• Upside risk: An unexpected rise in global oil prices could provide support for the CAD.
• Downside risk: Further tariffs imposed by the U.S. on Canadian imports could negatively impact the CAD.
