On Friday, EUR/DKK saw the largest day-to-day change since the introduction of the euro in 1999, temporarily jumping back above the central rate of 7.46038.
Despite the sharp move higher on Friday, we remain concerned primarily about EUR/DKK downside pressure.
We expect Danmarks Nationalbank to cap EUR/DKK in the range of 7.4440-7.4700 and do not expect changes to the certificate of deposit rate on 12M.
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