November 7, 2018 - Written by John Cameron
STORY LINK Pound Danish Krone (GBP/DKK) Exchange Rate Strikes Six-Month High as Brexit Optimism Continues to Grow
The Pound Danish Krone (GBP/DKK) exchange rate is resting close to a six-month high today as Sterling continues to be buoyed by hopes that a Brexit deal could be struck in the coming weeks.
Pound (GBP) Exchange Rates Buoyed by Talk of Government’s Brexit Timetable
The Pound is trade close to multi-month highs against the Danish Krone (DKK) and a many of its other currency peers today amid hopes that strides are being made towards finalising a Brexit deal in the immediate future.
If any more evidence of just how much impact Brexit headlines can have on GBP exchange rates, yesterday saw Sterling push higher on the back of nothing more than a hand gesture as Brexit Secretary Dominic Raab gave a verbal ‘thumbs up’ to reporters as he left Downing Street following a crunch cabinet meeting on Brexit.
Commenting on the latest developments Ray Attrill, Head of FX Strategy at the NAB, said :
‘It seems we’ve now graduated from an obsession with President Trump’s Twitter feed to interpreting the hand signals coming out of 10 Downing Street as a source of inspiration for market volatility.
‘Thus a ‘thumbs up’ from UK Brexit secretary Dominic Raab out of a Cabinet meeting yesterday saw Sterling immediately jump to its best levels in two weeks.
‘This was on the view that progress is being made towards a UK Brexit position with regards to the Irish backstop that could suffice to have EU Brexit Commissioner Michel Barnier being prepared to call an EU Summit for later this month.’
New reports from the BBC have also reaffirmed suggestions that the UK Government is seeking to finalise a Brexit agreement by the end of November, with the BBC reporting a timetable has been drawn up by Theresa May and her cabinet in order to help achieve this.
Danish Krone (DKK) Exchange Rates Steady as Domestic Industrial Production Rebounds
Meanwhile the Danish Krone (DKK) is holding its ground this morning following the release of Denmark’s latest industrial production figures.
According to data published by Statistics Denmark, domestic industrial production rebounded from an upwardly revised -3.5% to 1.6% in September, beating expectations of a more modest rebound of 1.1%.
The upswing appeared to be mainly driven by a strong lift in durable consumer goods orders, which help to offset a slide in energy production.
GBP/DKK Exchange Rate Forecast: Upbeat UK GDP Figures to Propel Sterling Higher
Looking ahead to the tail end of the week, the Pound Danish Krone (GBP/DKK) exchange rate looks poised to punch even higher following the release of the UK’s latest GDP figures.
Economists forecast Friday’s preliminary reading will report UK economic growth accelerated in the third quarter, climbing from 0.4% to 0.6% on the back of solid consumer spending over the summer thanks to the World Cup and warm weather.
Further support may come from the accompanying business investment figures, with investment growth expected to see a modest lift in the third quarter after a 0.7% contraction in the previous quarter.
Meanwhile the Danish Krone’s position as being pegged to the Euro (EUR) could see DKK give some ground on Thursday, with the single currency potentially being dented by the European Central Bank’s (ECB) economic bulletin if the recent slowdown in the Eurozone leads to a more cautious outlook from the bank.
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TAGS: Daily Currency Updates