🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Halt Of Bond Issuance No Magic Bullet - New Rate Cut Looms

Published 02/04/2015, 11:12 PM
Updated 05/14/2017, 06:45 AM
EUR/DKK
-

The halt of government bond issuance by Danmarks Nationalbank does not seem to have been the magic bullet in terms of easing DKK appreciation pressure.

We expect further easing will be needed, which is best carried out through FX intervention purchases and a lower CD rate.

We forecast EUR/DKK to stay at 7.4440 on 1M to 12M and a cut of the CD rate by 15bp to minus 0.65% in 3M.

Given the steepness of the Danish swap curve, we still see value in receiving Danish swaps, preferably in the 1-5Y segment. Danish real-money funds with EUR exposure and a hedging mandate should hedge their EUR exposure due to the prevailing downside risk in EUR/DKK.

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

Latest comments

Loading next article…
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.