Quotes from Danske Bank:
-In the Scandi FX markets, Norges Bank's weekly flow released yesterday shows that foreign banks (proxy for speculative flows) net bought the Norwegian currency last week worth NOK4.6bn. Since mid January foreign banks have been net NOK buyers of roughly NOK17bn, suggesting a high NOK sensitivity to the downside should the unemployment figures tomorrow disappoint.
-Since Friday, EUR/DKK has hovered in the high end of the de facto trading range above the central rate of 7.46038 as the market has started speculating in a beginning normalisation of monetary policy in Denmark. We expect Danmarks Nationalbank to cap EUR/DKK in the range of 7.4440-7.4700 in 12M.
