Danmarks Nationalbank (DN) today announced that it will introduce daily market operations from 1 February 2017.
Daily market operations will limit calendar effects on short-term DKK money market rates, swap rates and FX forwards but not the more important effect of large changes in banks' net positions.
We keep our view that EUR/DKK will trade at 7.4350 on 1-3M and 7.4400 on 6-12M and that the key policy rate will stay unchanged at -0.65% on 12M.
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