{"id":113948,"date":"2017-10-03T09:40:26","date_gmt":"2017-10-03T13:40:26","guid":{"rendered":"http:\/\/countingpips.com\/?p=113948"},"modified":"2017-10-03T07:03:31","modified_gmt":"2017-10-03T11:03:31","slug":"usddkk-danish-krone-forex-technical-analysis-negative-rate-policy-may-continue-long-time","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/usddkk-danish-krone-forex-technical-analysis-negative-rate-policy-may-continue-long-time\/","title":{"rendered":"USDDKK Danish krone: Forex Technical Analysis – Negative Rate Policy may continue long time"},"content":{"rendered":"
October 3, 2017<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

The negative rate policy may continue for a long time<\/strong><\/p>\n

Danish Central Bank Governor Lars Rohd said that the rate growth is possible only in case of noticeable improvement in the country\u2019s economic situation. He also added that he did not consider the rise in property prices by 10% per year to be a “housing bubble”. Will the Danish krone <\/a> continue weakening against the US dollar?<\/p>\n

Denmark has had a negative rate the longest in Europe, since 2012, which currently is minus 0.75%. At the same time, the September inflation was 1.5%. Note that according to the European Union’s Exchange Rate Mechanism (ERM2), the rate of the Danish krone should be in the range of 7.46038 krones per euro, plus or minus 2.25%. Currently it is 7.443. In the 2nd quarter of 2017, Denmark’s GDP grew by 2.71% in annual terms, which has been the usual level in the last few years. The Danish Central Bank expects an economic growth of 2.3% this year and of 1.8% in 2018. Negative rates may continue until 2020. Theoretically, the development of negative trends in the EU may have a more impact on the Danish krone than on the euro. Note that the euro is falling on the background of the events in Spain after the referendum on the Catalonia independence.<\/p>\n

\"USDDKK\"<\/p>\n

On the daily timeframe, USDDKK: D1<\/b> came out of the falling trend into the neutral one. The price correction upwards is possible in case of maintaining the negative rate in Denmark and the publication of negative economic indicators in the eurozone.<\/p>\n