FxWirePro: USD/DKK hovers towards 2-month peak, struggles to sustain gains above 6.4000
Friday, September 25, 2020 8:49 AM UTC
- The Danish Krone plunged, hovering towards a 2-month low hit in the prior session following downbeat retail sales data.
- Denmark's retail sales decreased 1.20 percent in August after declining 1 percent in the previous month. However, retail sales rose by 2 percent year-on-year in August, following an upwardly revised 7.3 percent gain in the previous month.
- Moreover, hopes of U.S. stimulus strengthened the greenback across the board.
- Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on as soon as next week and House Speaker Nancy Pelosi reiterated she is ready to negotiate on it with the White House.
- The greenback against a basket of currencies traded 0.1 percent up at 94.39, having touched a high of 94.59 on Thursday, its highest since July 24.
- USD/DKK is trading 0.1 percent higher at 6.3879, having hit high of 6.4021 the day before, its highest since July 24.
- The pair fell to a low of 6.3706 earlier in the session but found strong support at 55-EMA.
- Immediate resistance is located at 6.4095, close above could take it till 6.4180.
- On the downside, support is seen at 6.3561, and any break below will take it till 6.3450 (5-DMA).