EUR/DKK: Anticipating One Final Hike in Denmark

EUR/DKK: One last hike in Denmark

Danmarks Nationalbank refrained from intervening in the currency market for a fifth consecutive month in June.

EUR/DKK has climbed steadily in July after a short-lived dip below 7.4460 on 30 June, and it seems quite likely that DN can keep stirring away from FX intervention and continue to follow the ECB’s pace of tightening.

We expect the DN to follow the ECB with a 25bp hike in September. In line with our call for a higher EUR/USD, we expect EUR/DKK to keep inching higher and round up to 7.46 around the turn of the year.

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Topics

eur/usd fx intervention currency market September hike EUR/DKK Danmarks Nationalbank ECB's pace of tightening inching higher 7.46.