Danish Krone Peg Collapse amid Brexit is a Possibility: Danske Bank
Posted: Thu May 19, 2016 7:12 pm
Inadvertent consequences across the financial markets are a frequent occurrence. Such was the case of the decision of the Swiss National Bank to abandon its foreign exchange rate floor under the EUR/CHF that it had introduced in 2011. Following the sharp appreciation of the Swiss franc, other currency pegs in Europe seemed threaten in January 2015.
Come May 2016 and another black swan event is looming over the markets. While recent surveys suggest that the likelihood of a Brexit is less than previously feared financial markets remain unpredictable in their nature.
Danske Bank has highlighted substantial risks for the Danish krone ... (read more)