The current market bias for GBP to DKK is bullish.
Recent forecasts highlight a widening interest rate differential between the Bank of England and Danmarks Nationalbank, with the BoE signaling slower future cuts while the DKK remains supported by its peg to the euro. Additionally, the UK’s retail sales data, expected to show a rebound, could further bolster the pound, while Danish economic stability and lower wage growth might contribute to a stable krone.
This exchange rate is expected to remain within a stable trading range over the next few months, as GBP to DKK has recently reached 60-day highs near 8.5696, displaying only a modest fluctuation around its 3-month average.
Upside risks could arise if the UK economic data continues to outperform, enhancing confidence in the pound. Conversely, downside risks may emerge if global economic uncertainty leads to a flight to safety, drawing investors to the krone and impacting the GBP-DKK rate negatively.