FxWirePro: USD/DKK near 2-week trough, dip till 6.2204 likely
Monday, August 31, 2020 9:52 AM UTC
- The Danish Krone surged to a near 2-week peak following the release of better-than-expected economic data.
- Denmark's unemployment rate declined to 5.2 percent in July from a downwardly revised 5.4 percent in the previous month, its lowest jobless rate since March.
- Preliminary data showed the Danish economy shrank by 6.9 percent on quarter in the three months to June, compared to 2 percent contraction in the previous period, but better than forcast of 7.4 percent contraction.
- The dollar index steadied after tumbling to an over 2-year low earlier in the session on the U.S. Federal Reserve’s new policy framework that suggested interest rates would remain low for some time.
- USD/DKK is trading 0.05 percent down at 6.2487, having hit high of 6.3272 on Thursday, its highest since August 21.
- Immediate resistance is located at 6.2840 (7-EMA), close above could take it till 6.2987 (21-DMA).
- On the downside, support is seen at 6.2204 and any break below will take it till 6.20646.