DKK: Intervention remains absent – Nordea

FXStreet Insights Team FXStreet

Despite the weakened Danish Krone (DKK) against the Euro (EUR), the Danish central bank has not intervened in the foreign exchange market, indicating that the current interest rate spread will likely remain unchanged. The Krone has shown slight appreciation recently, but the longest period without intervention since the Euro's introduction continues. Nordea analysts suggest that a seasonal weakening could occur as dividend payments increase in the coming months.

No intervention from the Danish central bank

"Despite a weakened Danish krone against the euro, the Danish central bank has not yet intervened in the foreign exchange market. This supports our expectation that the current interest rate spread will be kept unchanged."

"Since the peak in EUR/DKK in mid-January the Danish krone has appreciated slightly and is currently trading around 7.456 against the euro. Due to this, it is most likely that the record long period without intervention is still going on."

"When the Danish krone weakens toward previous intervention levels, the risk of an independent Danish rate hike increases and the DESTR-€STR spread widens."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD retreats below 1.3350; Fed Minutes in focus

GBP/USD struggles to find its footing and trades in negative territory below 1.3350, pressured by the renewed USD strength. US President Donald Trump said on the MoU signed with Iran to end the conflict was "over", causing safe-haven flows to dominate the action in financial markets. Later in the American session, the Fed will publish the minutes of the June policy meeting.

EUR/USD tests 1.1400 as USD gathers strength on Trump comments

EUR/USD comes under bearish pressure on Wednesday and declines toward 1.1400. US President Trump said the MoU signed with Iran to end the conflict was "over" and added that the didn't want to engage with Tehran anymore, triggering a flight-to-safety and boosting the USD.

Gold drops below $4,100 as Middle East tensions escalate

Gold turns south on Wednesday and trades deep in negative territory near $4,050 on Wednesday. Investors adopt a cautious stance and help the USD gather strength after US President Trump said at the NATO summit that the MoU signed with Iran to end the conflict was "over" and added he didn't want to engage with Tehran.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

Fed Minutes to shed light on Warsh's first meeting as Chair

The United States (US) Federal Reserve (Fed) will release the Minutes of the June 16-17 Federal Open Market Committee (FOMC) meeting on Wednesday at 18:00 GMT. The Minutes should shed more light on the Fed’s hawkish hold delivered at Kevin Warsh’s first meeting as Fed Chair. Even so, doubts remain about how much the minutes will reveal, given Warsh's refusal to provide forward guidance.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.