We see little short- and medium-term impact on DKK from the expected political agenda from President Trump, but keep an eye out for longer-term negative effects.
Focus for DKK now turns to December’s ECB meeting and political events in Europe – both are set to weigh on EUR/DKK. We forecast EUR/DKK at 7.4425 on 1-12M.
We recommend Danish pension funds with a hedging mandate hedge EUR exposure in longer-dated FX forwards (beyond 6-7Y).
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