DKK/USD Outlook: Slightly positive, but likely to move sideways, as the rate is above the recent average but lacks a clear driver due to mixed factors affecting both currencies.
Key drivers:
- Rate gap: Denmark's central bank is currently more stable compared to the Federal Reserve, which is expected to cut rates further, adding pressure on the USD.
- Risk/commodities: Ongoing geopolitical tensions, particularly in the US involving military actions, are undermining the USD's value.
- One macro factor: The Danish economic outlook remains positive, with expectations for increased house prices supporting the krone's stability.
Range: DKK/USD is likely to hold within its recent 3-month range, oscillating without pushing towards the extremes.
What could change it:
- Upside risk: A sudden escalation in US geopolitical tensions could trigger stronger demand for the krone as a safe-haven.
- Downside risk: An unexpected Federal Reserve decision or unfavorable economic data could further weaken the USD.
