Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Lower EUR/DKK Ahead, Expect Drop To 7.4520

Published 08/08/2014, 02:50 AM
Updated 05/14/2017, 06:45 AM

Danske Bank's EMPI indicates that the depreciation pressure on the krone in the spring has abated. EUR/DKK has dropped below the central rate. The negative risk premium on the krone prevails, which means there is still a negative carry on EUR/DKK in FX forwards.

Recent easing measures from the ECB are the EUR/DKK negative and we now expect the EUR/DKK to drop to 7.4520 on 12M. A move close to 7.4500 will likely trigger a reaction from DN.

We expect the negative carry on short the EUR/DKK to prevail and the 12M EUR/DKK FX forward outright to stay below 7.4500. Therefore, we recommend real money funds with euro exposure to hedge their euro exposure in the longer-dated EUR/DKK FX forwards, i.e. from 4Y and beyond.

To Read the Entire Report Please Click on the pdf File Below

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.