EUR/DKK to move within 7.4425-7.4450 range in 2021 – Danske Bank

Economists at Danske Bank expect the EUR/DKK pair to trade in a narrow 7.4425-7.4450 range over the next year. 

Key quotes

“We look for EUR/DKK to trade in the 7.4425-7.4450 range in the coming year.”

“Positive and negative factors are well balanced. Carry and positioning among Danish L&P funds support DKK, while payouts of vacation money and the transmission of negative rates to retail deposits weigh on the DKK.”

“We expect Danmarks Nationalbank to maintain the tight fluctuation band from 7.4325-50 to 7.4730.”