Danske Bank's DKK EMPI signals continued modest downward pressure on EUR/DKK following the French presidential election.
We forecast EUR/DKK to trade around 7.4400 on 1-12M.
We recommend Danish pension funds with EUR assets to hedge in longer-dated FX forwards or to use the potential move higher in EUR/DKK spot to hedge on 3-6M. Corporations with EUR payables should hedge on 2-3Y.
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