USD/DKK Outlook: Bearish, given the current position below the 90-day average and near recent lows.
Key drivers:
- Rate gap: The US Federal Reserve's expected interest rate cuts are increasing pressure on the USD compared to Denmark's stable monetary policy.
- Risk/commodities: Rising geopolitical tensions and uncertainties have contributed to a decline in the USD as investors pull back from US assets.
- One macro factor: The increase in US jobless claims points to weakening employment trends, supporting bearish pressure on the dollar.
Range: The USD/DKK pair is likely to drift lower within its recent range, facing challenges to regain strength.
What could change it:
- Upside risk: A reversal in US economic indicators showing stronger-than-expected growth could boost the USD.
- Downside risk: Escalation of geopolitical tensions or a further increase in jobless claims could deepen the USD's decline.
