Economists expect EUR/DKK to rise slightly and likely just enough to break the 7.4400 level after central banks announcements on Thursday.

Crunch time for EUR/DKK

“We expect Danmarks Nationalbank (DN) to hike 10 bps less than ECB on Thursday and widen the spread to -35 bps.”

“It is a 50/50 event whether DN follows ECB or not according to the market. Hence, if we are right, we expect EUR/DKK to rise, although only just above 7.4400.”

“FX forwards should drop if DN hikes 10 bps less. A further rise in EUR rates on a hawkish ECB would slightly mitigate the effect.”