EUR/DKK peg will remain intact after Danish elections – Danske Bank

FXStreet (Edinburgh) - Chief Economist Steen Bocian at Danske Bank argued the peg will remain a cornerstone of the Danish economy, regardless the outcome of the June elections.

Key Quotes

“This year has seen strong focus on Denmark’s fixed exchange rate policy. Following Switzerland’s decision to abandon its EUR/CHF floor in mid-January 2015 – and because of quantitative monetary easing by the European Central Bank – the DKK has been under significant appreciation pressure”.

“The Danes going to the polls on June 18th will not affect Denmark’s fixed exchange rate policy".

"The EUR/DKK peg is not an issue in the election campaign, as this key element of Danish economic policy enjoys broad backing from the political parties in parliament".

"So, whatever the outcome of the election on June 18th, the peg will remain a fundamental element of Danish economic policy – and the role of the central bank will not be affected by the outcome of the election”.