Denmark: Strong DKK triggers sizeable FX intervention – Danske Bank

Senior Analyst, Jens Nærvig Pedersen at Danske Bank, notes that in May, Danmarks National bank sold DKK24bn in FX intervention, increasing the FX reserve to DKK427bn, from DKK404bn in April.

Key Quotes

“It has made FX intervention to cap EUR/DKK downside as EUR/DKK was below 7.4400 for most of May.

We forecast EUR/DKK at 7.4375 in 1-12M and the key policy rate will stay unchanged at minus 0.65% in 12M.”