FxWirePro: Danish Krone gains on better-than-expected industrial production data
Wednesday, October 7, 2020 10:42 AM UTC
- The Danish Krone surged, reversing some of its previous session losses, following better-than-expected industrial production data.
- Denmark's industrial production fell 7.7 percent year-on-year in August, following a 14.6 percent slump in the previous month, and compared to a forecast for an 11 percent drop. On a seasonally adjusted monthly basis, industrial production jumped 5.7 percent in August, after an upwardly revised 5.9 drop in July.
- Moreover, weakness in the greenback against a basket of currencies further boosted the bid tone around the Danish currency.
- The dollar index slumped after U.S. President Donald Trump abruptly cancelled talks on economic stimulus with Democrat lawmakers until after the November 3 presidential election,
- USD/DKK is trading at 6.3320, having hit low of 6.3015 on Tuesday, its lowest since September 21.
- Immediate resistance is located at 6.3584 (10-DMA), close above could take it till 6.3632 (55-EMA).
- On the downside, support is seen at 6.3130 and any break below will take it till 6.3015.