EUR/DKK Outlook:
The EUR/DKK rate is likely to move sideways as it is near its 90-day average and resides in the mid-range of its recent trading pattern. Current geopolitical tensions and mixed economic signals add to the uncertainty.
Key drivers:
• Rate gap: The European Central Bank's cautious interest rate stance contrasts with Denmark's stable exchange rate policy, supporting the krone's position.
• Risk/commodities: Oil prices are notably above average, which can pressure the euro due to implications for import costs and inflation in the Eurozone.
• One macro factor: Upcoming German consumer confidence figures are expected to potentially influence the euro positively if they show improvement.
Range:
EUR/DKK is expected to hold within its recent trading range as uncertainties balance out.
What could change it:
• Upside risk: A significant improvement in Eurozone economic indicators could support the euro’s value.
• Downside risk: Escalation of the Russia-Ukraine conflict may further destabilize the euro.
