The Euro to Danish Krone (EUR/DKK) exchange rate advanced on Monday as expectations rose that a deal will be reached between Greece and its creditors and as economic data out of Germany beat forecasts.
The Euro to Danish Krone (EUR/DKK) exchange rate touched a session high of 7.4626
After a bout of tense and often ill tempered talks held over the weekend between Athens and its creditors, optimism edged higher that Greece will manage to reach a deal with its creditors.
With the European Commission finally appearing to be taking the situation seriously, negotiations are underway between the two sides.
Greek Prime Minister Alexis Tsipras has said that he is determined to keep negotiating with its creditors over the next few weeks to reach a deal that will satisfy both sides.
Some of the worries over the impact of a potential ‘Grexit’ were eased by comments made by France’s Finance Minister, Michel Sapin.
‘It would be no drama for us to see Greece leaving the Euro. It would not be serious from a financial or economic point of view. However, it would be a blow to the European project, because the European project is not to shrink but to enlarge, not to see members excluded but to welcome more,’ said Sapin.
Industrial production data out of Germany also buoyed the single currency as it showed that production increased in April by a bigger than expected margin. The report added to optimism that the Eurozone economy was seeing its recovery strengthen.
On an annual basis, industrial production strengthened from March’s revised figure of 0.2% to 1.4%. On a month-on-month basis, production rose from -0.4% to 0.9%.
Also supporting the single currency was a separate report, which showed that the nation’s trade balance, increased by a more-than-forecast level last month. According to Destatis, Germany’s trade balance rose from €19.4 billion to €22.3 billion.
Danish Industrial Production Falls in April
The Krone weakened as data showed that industrial production in the Scandinavian nation fell in April.
Industrial production fell by -1.57% on a month-on-month basis, a sharp drop from the preceding month’s revised figure of 4.85%. In an annual basis production rose 4.44%, down from the previous figure of 4.92%.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Reached A Session High Of 0.7336
The Pound Sterling weakened against the majority of its most traded peers after Moody’s Investors Services warned that an early referendum on Britain’s membership of the European Union could put the nation’s credit rating at risk.
The agency suggested that UK economic growth would likely suffer from a ‘Brexit’.