Quotes from Danske Bank:
-The defence of the DKK remains the big story in Scandi FX markets. Denmarks Nationalbank cut the CD rate by 25bp to -0.75% on Thursday. Furthermore, DN amended the usual press release with additional comments about the fixed exchange rate policy.
-This underscores that DN is strongly committed to maintaining the fixed exchange rate policy but also hints that more emphasis may be put on FX intervention purchases going forward. We expect DN to cap EUR/DKK downside at 7.4440 on a 12M horizon.