DKK appears to be the primary currency of Denmark, Greenland, and the Faroe Islands. One Danish krone is made up of 100 ores. As you might have already guessed, USD/DKK is an exotic asset. Of course, the US economy is far more significant than the Danish one. The EUR rate greatly influences DKK. 1 DKK is worth 7.46038 euros. By the way, quotations of these currencies duplicate each other. As follows from this, it makes no sense to trade DKK against EUR. The exchange rate of these two currencies is always the same relative to each other.
The pegging of DKK to EUR took place in 1992. Well, following the signing of a pact aimed at creating a single European currency, the participants promised to use EUR. Furthermore, Denmark held a referendum on this issue, and the vast majority of its citizens objected to the removal of their monetary unit. The country’s cabinet did the trick by leaving the national currency but pegging it to EUR.
USD appears to be the critical Forex currency. It’s available in nearly all key market assets. The evergreen buck is also available in cross pairs. All conversions are still carried out through USD. However, this process is invisible to most market participants. That’s the reason why cross-pairs have a higher spread.
USD is also a reserve currency. Most international payments are carried out through the greenback. The US significant financial watchdog, the Federal Reserve issues USD and takes other measures to stabilize the evergreen buck. Fed meetings often generate extraordinary market volatility. You need to take into account the dates of Fed meetings when working out your strategy.
Denmark features a mixed economic model oriented on qualified personnel. The country has a well-developed gas and oil sector. It also mines on the shelf of the North Sea.
Denmark occupies the 32nd place in the world in terms of nominal GDP, with its 333 billion USD. It’s an imposing figure for such a small country. However, it seems modest compared to America.
Denmark doesn’t have a statutory salary. On the other hand, Denmark boasts a shallow inequality index. As for unemployment in this country, it’s traditionally low. As a rule, it doesn’t exceed 6%, which is much lower than the eurozone average.
Denmark boasts a well-developed corporate production, applying to many sectors, such as banking and housing. It’s mostly industrial country – up to 73% of their GDP. The country mainly exports products of fuel and chemical industries. What’s more, its agriculture is well-developed too.
Exports create over half of Denmark’s GDP. The country’s cabinet pursues a liberal economic policy. With one of the highest living standards in the world, Denmark appears to be a significant trade partner of the EU.