CAD/DKK Outlook:
Slightly positive, but likely to move sideways, as CAD is near its recent average but lacks a strong driving factor.
Key drivers:
• Rate gap: The Bank of Canada has kept interest rates stable, contrasting with rate cuts from Danmarks Nationalbank, which may weaken the DKK.
• Risk/commodities: Oil prices are currently above their average, which supports the CAD due to Canada's status as a major oil exporter.
• Macro factor: The recent fall in Canadian unemployment suggests a potentially improving Canadian economy, which could benefit the CAD.
Range:
Expect CAD/DKK to hold within its recent 3-month range, trading steadily without significant movement in either direction.
What could change it:
• Upside risk: A continued rise in oil prices could strengthen the CAD further.
• Downside risk: Increased pressure on Denmark’s currency peg to the euro could weaken the DKK.