Following numerous rate cuts and backdoor QE (halting government bond issuance), Denmark’s Krone is collapsing this morning following the head of Denmark’s Economic Council, Hans Jorgen Whitta-Jacobsen said:
- DENMARK’S CENTRAL BANK WILLING TO USE CAPITAL CONTROLS IF NECESSARY TO DEFEND DKK PEG
This has sparked the biggest drop in DKK against EUR since 2001 and as SEB chief strategist Carl Hammer exclaimed, “currency markets are extremely nervous.”
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The Krone collapses…
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With its biggest dump against the EUR since 2001…
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As bets continue on whether Denmark will be force SNB-like to break the peg.
Damage control is beginning:
- *DANSKE: VERY, VERY UNLIKELY DENMARK WOULD IMPOSE FX CONTROLS
- *DANSKE BANK SENIOR ANALYST JENS NAERVIG PEDERSEN SPOKE BY PHONE
Charts: Bloomberg
