FxWirePro: USD/DKK rises on Denmark's downbeat economic data, likely to break above 6.6605
Tuesday, June 30, 2020 10:31 AM UTC
- The Danish Krone declined, halting a 2-day rally, following the release of downbeat economic data.
- The Danish economy contracted by 2.0 percent on quarter in the three months to March, compared to an upwardly revised 0.6 percent rise in the previous period, recording its first contraction in the economy since the third quarter 2017 and the steepest fall in eleven years.
- Separate data showed Denmark's unemployment rate increased to 5.6 percent in May from 5.4 percent in the previous month, its highest level since the end of 2012 in May, as the coronavirus lockdown wiped out jobs across the economy.
- Moreover, a rise in the dollar index further dented the bid tone around the Danish currency.
- USD/DKK is trading 0.4 percent up at 6.6543, having hit low of 6.5672 last week, its lowest since June 16.
- On Monday, the pair fell as low as 6.6023 but failed to breach the 6.6000 level, retracing to close at 6.6285.
- Immediate resistance is located at 6.6605, close above could take it till 6.6760.
- On the downside, support is seen at 6.6015 and any break below will take it till 6.5797.