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Danish krone seen weaker against euro as Nationalbanken stays out

Nordea said Nationalbanken did not intervene in July, after a small krone purchase in June, and expects the EUR/DKK interest rate differential to remain unchanged for an extended period.

Reported · Written up by our desk · Central Banks

Nordea’s chief analyst Jan Størup Nielsen said Denmark’s central bank, Nationalbanken, did not intervene in July to support the country’s fixed exchange rate policy.

In an analysis carried by FXStreet, Nielsen pointed to a small purchase of kroner in June as the earlier action, but argued that the Danish krone’s recent weakness versus the euro is linked to shifts in domestic corporate demand.

Nielsen also said he expects the EUR/DKK interest rate differential to stay at current levels for an extended period, implying limited near-term support for the krone from rate expectations.

The analysis was presented as market commentary and did not include any new data releases or trading actions beyond the stated intervention history.

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