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Longer Dated EUR/DKK FX Forwards Giving In To Strong Fundamentals

Published 08/21/2017, 06:20 AM
Updated 05/14/2017, 06:45 AM

Longer dated EUR/DKK FX forwards continue to trend lower and are now at a level around 7.42, trading in line with strong DKK fundamentals.

Pricing of shorter dated EUR/DKK FX forwards could be influenced by the upcoming tightening of liquidity requirements.

We forecast EUR/DKK at 7.4400 in 1-12M and believe DN will keep the key policy rate unchanged at minus 0.65%.

We recommend Danish pension funds with EUR assets hedge in shorter dated FX forwards. Corporations with EUR payables should hedge on 6M-4Y.

To read the entire report Please click on the pdf File Below:

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