FxWirePro: USD/DKK hits 2-year trough, faces support at 6.2004
Tuesday, September 1, 2020 9:56 AM UTC
- The Danish Krone surged to an over 2-year peak as the dollar weakened against a basket of currencues.
- Investors seem to have ignored Denmark's soft economic data, which showed manufacturing PMI decreased to 52.30 points in August from 56.90 points in July, although it remained above the 50-point mark that separates growth from contraction.
- The dollar index plunged to an over 2-year low as the Federal Reserve’s new policy framework continued to fuel bets that U.S. rates will stay lower for longer than other countries.
- USD/DKK is trading 0.4 percent down at 6.2128, having hit low of 6.2036 earlier, its lowest since May 2018.
- Immediate resistance is located at 6.2573, close above could take it till 6.2720 (7-EMA).
- On the downside, support is seen at 6.2004 and any break below will take it till 6.1906.