EUR/DKK: Upward pressure eased – Danske Bank

Danmarks Nationalbank (DN) today published March FX reserve and central bank balance sheet data, economists at Danske Bank recap. EUR/DKK is trading at 7.4682.

Key quotes

“Danmarks Nationalbank (DN) sold DKK65bn in the FX market to cap EUR/DKK upside in March before hiking policy rates by 15bp.” 

“Tightening of monetary policy and stabilisation of global financial markets has eased upward pressure on EUR/DKK and removed the need for further action.”

“We look for EUR/DKK to continue to trade above the 7.46038 central rate in the short term and for DN to keep policy rates unchanged at the current -0.35% for the repo rate and -0.60% for the CD rate.”