Nordea: Danish Central Bank May Tolerate Weaker Krone as EUR/DKK Hits Record Low
Nordea strategists note that EUR/DKK is trading at its weakest level since the euro's launch, suggesting the Danish central bank may have quietly shifted its intervention stance to tolerate a weaker krone.
EURDKK
According to Nordea strategists, the EUR/DKK currency pair is currently trading at its weakest level since the introduction of the euro. This historic low raises the possibility that Denmark's Nationalbanken has adjusted its de facto intervention policy to allow for a weaker krone.
The analysis implies a shift in the central bank's tolerance for currency depreciation, which could signal a more accommodative stance going forward. No official confirmation from the Nationalbanken has been provided yet.
Source: FXStreet Forex News