EUR/DKK is still trading close to Rohde's lower bound - the past three sustained rebounds in EUR/DKK have come after one or more Danish rate cuts.
We look for EUR/DKK to stay low and the key policy rate to stay unchanged at minus 0.65% in 12M, while windows of support may temporarily open near term.
We recommend Danish pension funds with EUR assets and a hedging mandate hedge on 6Y and beyond and corporations with EUR payables hedge on a 1-3Y.
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