EUR/DKK: Dividend payments to support the pair this week – Danske Bank

Upwards pressure on EUR/DKK eased a bit on Friday. The 15bp hike on Thursday along with the announcement of a EUR24bn swap facility with the ECB narrowed the discount in FX forwards and weighed on the pair, economists at Danske Bank brief.

Key quotes

“EUR/DKK will be in the hand of global risk sentiment short term.” 

“If equity markets continue to sell off, the small discount in FX forwards will not help much and we will likely see more outflow from the FX reserve.” 

“Dividend payments will continue to support EUR/DKK this week.”