Further decline in EUR/DKK could trigger DN intervention – Danske Bank

By FXStreet Senior Analyst at Danske Bank Jens Pedersen sees the likeliness of FX intervention by the DN if EUR/DKK slips lower.

Key Quotes

“EUR/DKK continues to trade with a heavy tone – it drifted below the 7.4380 level last night without any significant impact on EUR/DKK FX forwards, though”.

“A narrow interest rate spread to EUR, a relatively low DKK net position and use of the DKK as a hedge against spill-over to the EUR from the pending UK referendum are likely to continue to weigh on EUR/DKK and we see downside risk to around the level of 7.4350, where we see Danmarks Nationalbank capping downside for the pair by selling DKK in FX intervention”.
For more information, read our latest forex news. …read more

Source:: FX Street