EUR/DKK upside appears capped near term – Danske Bank

Aila Mihr, Analyst at Danske Bank, suggested the Danish Krone could pick up extra pace in the near term.

Key Quotes

“EUR/DKK rose yesterday after news broke that TDC recommends that shareholders accept a DKK40bn offer from four pension funds. Foreign investors currently own 96% of the TDC stock (US owns 51%, EZ about 20% and Norway 6%) and as three of the four buyers are DKK-based the transaction would involve DKK selling”.

“It might be what triggered the rise in EUR/DKK. Against this, we note that tighter DKK liquidity (due to large pension tax payments) will cap EUR/DKK topside short term”.