Bias: The EUR/DKK is range-bound, as it sits near the 90-day average and within the middle of its recent 3-month range.
Key drivers:
• Rate gap: The European Central Bank is maintaining a neutral monetary policy, while the Danish central bank has aligned its rates with the ECB to stabilize the krone.
• Risk/commodities: Oil prices are currently above average, which could influence inflation in the Eurozone and impact the euro's value as it integrates energy market trends.
• Macro factor: The Eurozone’s expected economic growth and stable inflation projections could contribute to a steady performance of the EUR.
Range: The EUR/DKK is likely to drift within its recent range, influenced by ongoing economic indicators and stability efforts in both regions.
What could change it:
• Upside risk: A rebound in Eurozone economic data could bolster the euro's strength against the krone.
• Downside risk: Geopolitical tensions affecting energy supply or economic performance could weaken the euro further.
