Daily outlook for DKK: Commerzbank

Quotes from Commerzbank Corporates & Markets:

-DKK: Yesterday and on Friday EUR-DKK even traded above the central EMS II parity. The assumption that Nationalbanken might be forced to abandon the euro peg (a la SNB) immediately went up in smoke. The fact that senseless rumors about alleged capital controls have been the trigger is a peculiar irony of history. Whatever the cause, for the time being the market is likely to have worked out that the Danish Nationalbanken is not comparable with the SNB.

-For the time being the EMS II system has been stabilized. If we assume that the market is capable of learning a lesson any attack the EMS II system survives should strengthen it. In that case the market would have to realize that Nationalbanken's interventions proved that it was willing to intervene to an unlimited extent. Following the example set by the SNB I have to admit that I had to struggle accepting this conclusion.