ExpatOilWorker Posted March 10, 2015 Share Posted March 10, 2015 The Danish Crown is still pegged at 7.46 to the Euro, but with the Central Bank interest rate at -0.75% (minus!), they dont have much more room to weaken the Crown. When the Euro peg of the Swiss France was lifted on January this year, it rose by about 30%. Nice little gain and I was wondering if something similar can be expected if and when the Danish Crown is floated? The risk by buying Danish Crowns now, is of course that it will follow the Euro down, but a potential overnight gain of 20-30% sure beats the 2% I am getting in the bank now. Link to comment Share on other sites More sharing options...
Swiss1960 Posted March 10, 2015 Share Posted March 10, 2015 Standard answer is this: When you are able to loose / take a hit towards the negative side, then do it... Link to comment Share on other sites More sharing options...
Swiss1960 Posted March 10, 2015 Share Posted March 10, 2015 .. and to add to this... most people will NOT tell you what / where they speculate with their money... mostly they only tell you when they win... they know that the Internet never forgets what you post... and people on TV even less Link to comment Share on other sites More sharing options...
taiping Posted March 10, 2015 Share Posted March 10, 2015 Yes, I converted my Swiss Francs to Danish Krone recently at Bangkok Bank, betting on the same thing. Link to comment Share on other sites More sharing options...
gammelnok Posted March 10, 2015 Share Posted March 10, 2015 Good luck - it surely is needed as this scenario is not likely to happen. The Danish National Bank is far from running out of options to secure the span to the Euro. Who says the rate of interest can't go further down? The Danish National Bank has unlimited access and availability to to meet any demand for the Krone by buying Euros. Have a nice day - enjoy it as it is most likely the first of the rest. Rasmus Link to comment Share on other sites More sharing options...
khunPer Posted March 10, 2015 Share Posted March 10, 2015 Not very likely anything will happen to Dkk compared to following Euro within a narrow currency fluctuation band – but would be nice, if our Danish money suddenly became worth same in Thailand as about a year ago; on the other hand Danish stock values will fall to a lower level and loose lot of its gain during the 12 month... Link to comment Share on other sites More sharing options...
ExpatOilWorker Posted March 10, 2015 Author Share Posted March 10, 2015 How do you read the bid/ask future prices in the below? http://www.investing.com/currencies/usd-dkk-forward-rates Link to comment Share on other sites More sharing options...
Halfaboy Posted March 10, 2015 Share Posted March 10, 2015 Yes, also curious to know .... Link to comment Share on other sites More sharing options...
bushdoctor Posted March 10, 2015 Share Posted March 10, 2015 I don't want this to come off in a negative way but seriously, if you're not well experienced you would be much better off putting all your money on red at the roulette table. Currency trading is a fast way to lose your money if you don't have a very firm grasp on what you're doing. It takes years to develop your trading plan. My best advice is, if you have to ask....don't invest. You would be counting on pure luck. There is a lot to know about currency trading. If it interests you and you want to try it out, start with a practice account for a few months. Study, research, sign up for an online forex course. Most people will blow their account up at least a few times before they start to get any idea of basic startegies, myself included. If after a full year of trading you still have money in your account you will be one of the lucky few. If you absolutely have to invest in Danish Crowns...only invest what you are willing to lose, because the overwhelming odds are that you will lose. Link to comment Share on other sites More sharing options...
spacemand Posted March 10, 2015 Share Posted March 10, 2015 The Central bank will not leave the peg and will do anything it takes to keep it, it have been in place for ever it started in the German marks days and a big difference between the Swiss Central Bank and the Danish is that he Swiss Central Bank is partially private owned. The pressure on the Crown is disappearing and its not even a news story in Denmark anymore, it actually turned out well for the Central bank they made a couple of hundred million USD. Link to comment Share on other sites More sharing options...
wooloomooloo Posted March 10, 2015 Share Posted March 10, 2015 There is a lot to know about currency trading. And just when you think you know, you'll still hit the skids, anyway. If you're desperate to invest then I have an investment opportunity perfectly tailored to your personal needs. I'm rolling out an exclusive portfolio, 'toss the coin'. Heads I win, tails you lose. Link to comment Share on other sites More sharing options...
SheungWan Posted March 10, 2015 Share Posted March 10, 2015 (edited) One problem with trading in the smaller currencies is that the buy/sell spread is generally much larger then with the major pairs eg EURUSD. Edited March 10, 2015 by SheungWan Link to comment Share on other sites More sharing options...
UDONJIM Posted March 11, 2015 Share Posted March 11, 2015 The Central bank will not leave the peg and will do anything it takes to keep it, it have been in place for ever it started in the German marks days and a big difference between the Swiss Central Bank and the Danish is that he Swiss Central Bank is partially private owned. The pressure on the Crown is disappearing and its not even a news story in Denmark anymore, it actually turned out well for the Central bank they made a couple of hundred million USD. Quite correct spacemand. Speculators tried to do a 'swiss franc' on the Danish Krone but it failed and the pressure is off that currency for the moment. I've been short euro/USD and euro/GB pound for months now. It's almost too easy to make money with these trades as it's a given that the euro will reach parity with the USD, maybe even sub parity. It's only a matter of time. The GBP is a 'solid' currency and I've no doubt the euro will continue weakening against it also. All the above IMHO. Link to comment Share on other sites More sharing options...
bangon04 Posted March 12, 2015 Share Posted March 12, 2015 "Anybody speculating in Danish Crowns?" The Danish Royal Family, maybe? Link to comment Share on other sites More sharing options...
TM77 Posted March 12, 2015 Share Posted March 12, 2015 Not much speculation needed. When you bought your Baht around €|THB 40.00 some time ago which did not needed much wisdom, then learned at 45 that the Baht is not a safen heaven and now feel about time to take some profits but not want have them back in €uro,then buy Dkk and look at the rate €|DKK you have then! Same with CHF & SGD. BTW; My Crystalball tells me that the Thb against € is about to peak. Link to comment Share on other sites More sharing options...
ExpatOilWorker Posted June 14, 2016 Author Share Posted June 14, 2016 The Danish National Bank is again defending the Danish peg to the Euro, but at negative 0.75% interest rate the don't have much room. Could a Brexit finally weaken the Danish crown? Time to short? http://www.marketpulse.com/20160609/danish-krone-hits-crisis-levels Link to comment Share on other sites More sharing options...
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