23 Feb 2021 06:31
EUR/DKK is popular currency pair in the Forex market. Denmark is actively trading with the European Union. The European Union is the largest business partner of the country. For this reason, the trading instrument EURDKK is very popular among experienced traders who choose this trade instrument for reasons of high stability and predictability of the economies of the euro area and Denmark. The most intense bidding on a specific financial instrument observed during the work time of European stock exchanges.
EURDKK is the cross rate against the U.S. dollar. Although the U.S. Dollar obviously is not present at this currency pair, it still has a significant influence on it. This can be seen, if you combine two charts: EURUSD, USDDKK. By combining these two charts in the same price chart, you can get an approximate EURDKK chart.
The U.S. dollar has a significant influence on both currencies. For this reason it is necessary to take into account the major U.S. economic indicators for the correct prediction of a future course of this financial instrument. These indicators include: the discount rate, GDP, unemployment, new created workplaces indicator and many others. Is necessary to note that discussed currencies could respond with different speed on changes in the U.S. economy, therefore, EURDKK currency pair may be a specific indicator of change at these currencies.
Denmark is highly developed industrial-agrarian country with one of the high economic indicators in the world. Denmark has large oil reserves in the southern part of Jutland, as well as on the shelves of the North Sea, but it is poor in other mineral, that makes it on dependent position of exporting. The given country has strong economic connections with all the developed countries of the world and leads them to an active trade in machinery, electronics, agriculture, mining, etc. Denmark's main trading partners are EU countries.
Denmark has one of the strongest economies in the world that allows its currency to be stable in pairs with other major currencies on the Forex market. The strong points of the economy in Denmark are low inflation and low unemployment, the presence of major oil and gas reserves in the North Sea shelf and in the south of Jutland, the high level of development in high technology and the presence of competent professionals in all areas of the economy.
Although Denmark has one of the highest levels of the economy, the weaknesses of its economy are high taxes, as well as decrease its competitiveness in world markets. If you trade with this trading instrument, you should focus on economic indicators of Denmark, as well as the price of oil and other minerals needed to sustain Denmark produced goods.
If you trade cross rates, it is necessary to remember that brokers are usually set a higher spread than the more popular currency pairs, so before you start working with the cross-rates, it should be carefully acquainted with the conditions offered by the broker to trade with specified trade instrument.