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GBP/DKK Soars as Brexit Concerns Waned amidst Increased ?Remain? Support

Published: 23 Jun at 5 PM Tags: Pound Sterling, Euro Exchange Rate, Currency Exchange, Forex, Euro Crisis, UK, Exchange Rates, Pound Euro Exchaneg Rate,

Enabled by the Pound’s recent strength, the Pound Danish Krone exchange rate has skyrocketed since the start of Monday’s session.

A quelling of the rampant fears and uncertainty surrounding today’s EU referendum due to a perceived shift towards a ‘Remain’ result has afforded Stirling massive gains against the Danish Krone steadily over the week.

Today the pairing has spiked somewhat put appears to be failing to hold on to any significant gains as the market ponders today’s result.

Opening at 9.5695 on Monday morning, the GBP/DKK exchange rate generally trended significantly upwards to currently settle around 9.71, the highest rate it has seen since the start of the month.

Jo Cox’s Tragic Murder Marked the Start of the Pound’s Ascension

As the Danish Krone is pegged to within 2.25% the Euro, the GBP/DKK rate graphs almost mirror the GBP/EUR pairing.

From last Thursday, as ‘Remain’ sentiment began to stir around the unfortunate and saddening murder of Labour MP Jo Cox, the pairing has seen a massive rally with no Danish ecostats to affect the rate either way.

Gains continued over Friday and, barring what looks like some computer trading just before session close, continued to rise as the weekend closed in.

Lack of Ecostats Ensure Continued Rally of GBP/DKK Currency Pairing

On Monday the pairing saw an instant rally as soon as the markets opened. Shooting up to 9.6285 by the end of the session, weak UK house prices and conflicting EU referendum polls struggled to affect the rate in a tangible manner.

After an initial drop the, GBP/DKK pairing continued its upwards movement on Tuesday as further polls reinforced the mounting pro-EU atmosphere. The drop could be attributed to the Bank of England’s second emergency liquidity operation hinting that the institution believe a Brexit could be possible.

The pair traded fairly flat on Wednesday with another brief poll-induced fall in the early evening. A TNS survey indicated the ‘Leave’ camp had garnered a two-point lead, a change from the previous TNS results of 45/44 to ‘Remain’.

Today is referendum day and the Pound Danish Krone exchange rate has settled after a brief spike to 9.7522. The rate could move either way as markets attempt to gleam any sort of information as the UK goes to vote but a lot of investors remain cautious, awaiting tomorrow morning’s results before making and large trades as some Brexit jitters creep their way back in.

The pair is currently trading at 9.7090 Danish Kroner against the Pound.

Forecasts Spell Instant Movement in Either Eventuality, Results set to release Friday Morning

If the result tomorrow shows we are heading for a Brexit, you could expect to see the Pound fall as much as 20% by some analysts’ findings. Uncertainty will flood the market and it may have a knock-on effect for fellow member states as anti-EU sentiment is already on the rise across the channel, possibly even leading to other referendums.

Conversely, if we decide to remain in the union it could bolster the Pound significantly as any concerns floating around the referendum will dissipate and UK stocks should see a healthy boost.

Staying within the EU could lend support to the Euro itself also as the status quo remains but the more risk-on atmosphere expected could point investors towards the more lucrative yet volatile currencies.

All will be made clear tomorrow morning as the final results will be released, for good or ill.