That’s the critical currency of Greenland, the Faroe Islands, and Denmark. One Danish krone consists of 100 ores. It’s exotic stuff in the Forex market.
Indeed, the American economy outperforms the Danish one in terms of size. This currency is under a significant influence on the EUR rate. Currently, the exchange rate of 1 DKK accounts for 7.46038 euros. We should note that these currencies quotes duplicate each other, which makes it pointless to trade this currency against EUR.
In 1992, DKK was pegged to the common currency. The pact signed in that year suggested the shift to EUR. However, Denmark had to hold a referendum, and most citizens didn’t back the removal of DKK. Denmark’s government dared to do the trick and pegged the national currency to the common one.
The greenback is the major Forex asset available in almost all main market assets. What’s more, it’s also present in cross pairs. All conversions are still executed via the greenback, although most market participants don’t notice it. That’s why cross-pairs come with a higher spread.
Moreover, the greenback also acts as a reserve asset. The vast majority of international payments are executed by mean of the US dollar. The evergreen buck is issued and backed by the Federal Reserve. Fed meetings greatly influence the exchange rate of the evergreen buck, so take them into account when developing your trading strategy.
Denmark’s economy is mixed focused on qualified personnel. This European country has a highly developed gas and oil sector. Additionally, the country mines on the shelf of the North Sea.
In terms of nominal GDP, this European country occupies the 32nd place. Its GDP worth $333b sounds impressive for such a small country, although it can’t be compared to the US economy.
A statutory salary is absent in this country, although a relatively low inequality index compensates it. The country’s unemployment is quite small, never exceeding 6% – an excellent outcome in the eurozone.
Denmark has a well-developed corporate production, applying to several sectors, in particular, housing and banking. Up to 73% of the country’s GDP is formed by industry. Chemicals and fuel dominate the country’s exports. The country also has a well-developed agricultural sector.
Exports create approximately half of the country’s GDP. Its government pursues a liberal economic stance. With one of the most impressive living standards in the world, the European country appears to be a key trade partner of the European Union.
Utilize both fundamental as well as technical analysis to effectively trade this currency pair. Pay attention to money management, utilizing stop loss, and take profit orders. It will make your trading more organized, simultaneously reducing your losses.