Pound Sterling to Danish Krone (GBP/DKK) Exchange Rate Softer, More Movement Forecast
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Last week Retail Sales in Denmark were shown to have fallen in June, breaking a four-month winning streak. The 0.6% month-on-month decline wiped out May’s 0.3% increase and left the Krone slightly softer.
However, the UK’s own retail sales report also fell short of forecasts and the Bank of England’s disappointing meeting minutes reduced the appeal of the Pound.
Consequently, the British currency spent most of last week trending in a softer position against the majority of its currency counterparts.
On Monday a lack of market-moving data left the Pound to Danish Krone exchange rate trading in a narrow range.
The following day the Pound was able to advance briefly in response to the news that UK Mortgage Approvals increased by more than economists anticipated in June.
Approvals climbed from a revised 62,007 in May to 67,196 in June.
Economists had predicted a reading of 63,000.
Over the last few weeks economic reports for the UK have indicated that the UK’s overheating housing market might be cooling.
If that proves to be the case it could delay the BoE increasing interest rates, so this sign that the property sector is recovering was welcome.
Senior economist Samuel Tombs said that the data was a further sign ‘that the constraint on the economic recovery from bank lending is loosening’.
However, the gains in the Pound Sterling (GBP) exchange rate were minimal and comparatively short lived.
Pound Sterling to Danish Krone Forecast
Tomorrow some volatility in the GBP/DKK pairing could be caused by Denmark’s Business Confidence Index for July.
The measure is expected to have risen from -6 to -3.7.
An improvement in sentiment could push the Krone higher against the Pound.
Pound Sterling to Danish Krone (GBP/DKK) exchange rate movement could also be caused by the UK’s Lloyds Business Barometer.
Other economic reports from Denmark to be aware of over the next few days include Thursday’s employment figures and Friday’s industrial production report.
UPDATED 10:10 GMT 30 July 2014
On Wednesday the Pound Sterling to Danish Krone exchange rate continued trending in a softer position even as Denmark’s measure of Business Confidence disappointed expectations.
Economists had forecast that the index would climb from -7 in June to -3 in July but it actually sank to -13.
Additional movement in the European currency could be caused by today’s Eurozone reports. As the currency bloc is one of Denmark’s main trading partners, surprisingly positive reports from the Eurozone could bolster the Krone.
The GBP/DKK pairing was little changed after the UK’s Lloyds Business Barometer was published. The report showed a modest improvement, rising ever-so-slightly to 52 from 51.
The Pound Sterling to Danish Krone (GBP/DKK) exchange rate is currently trading in the region of 9.4195, just up from the day’s low of 9.4142.