Exchange Rates & Currency Deals

Bias USD/DKK remains range-bound around the 90-day avg, near the middle of its 3-month range. A US rate-cut path vs Denmark’s ECB-aligned peg keeps big moves limited and carry risk low. A strong or weak US payrolls report could move the dollar. Key drivers - Rate gap: US policy is expected to move toward cuts toward a neutral stance in 2026, while Denmark keeps the krone peg aligned with the ECB (a fixed link to euro area), a setup that can limit large moves in the pair and reduce carry risk for traders (the extra costs or gains from holding positions overnight). - US data: Upcoming payrolls and unemployment readings will shape bets on Fed easing and the timing of any policy change, in turn driving dollar demand and influencing hedges by importers and exporters. - Danish policy: The peg regime, ECB alignment, and modest reserve movements support a steady krone stance even as global rate expectations wobble. Range The pair has traded in a very tight band, hovering around the middle of its recent 3-month range. What could change it - Upside risk: A stronger-than-expected US jobs report or signals from Fed officials that rate cuts will be delayed could lift the dollar. - Downside risk: A clear path to rate cuts and dovish tones from Fed officials could ease dollar demand