Currency pair USDDKK
There is an opinion that in recent years the volatility of the main currency pairs on Forex has decreased radically.
Today, seeing a daily movement of 250 points in the euro/dollar is very rare, and, as a rule, caused by a strong news storm, which makes such jumps very unpredictable.
As you understand, a decrease in volatility and liquidity always leads to a decrease in the profitability of trading strategies.
Of course, you can overinflate the lot and achieve very high results by overestimating risks, but you can also go by using exotic currency pairs in your trading arsenal.
The USDDKK currency pair is one of the most popular exotic currency pairs, whose daily volatility can exceed 1,500 points.
On days of calm and a strong calm market, the price for this instrument manages to move 300-500 points, which allows the trader to use the same trend trading strategy as for the main market instruments to obtain increased profitability.
USDDKK is an asset that is formed by the American dollar and the Danish krone.
U.S. USD
The stability of the world's first reserve currency directly depends on the macroeconomic indicators of the US economy. In addition to such well-known macroeconomic indicators as GDP , balance, unemployment data, industry data has a very significant impact on the USD.
Do not forget that the United States is the largest consumer of oil in the world, so as prices for black gold fall, the dollar usually rises. However, one should not discount the fact that at the end of 2015, the US President lifted a forty-year ban on the sale of oil.
In addition to obvious macroeconomic indicators, the stability of the dollar is influenced by the stability in the regions of the main trading partners. For example, the collapse on the Chinese stock exchange caused a noticeable blow to the price of major US stocks and indices, which was reflected in the dollar.
Danish krone. DKK
Denmark is a full member of the European Union, but the state abandoned the single European currency, the euro, and retained its own Danish krone. Denmark's economy is one of the most stable in the world. Such success of this small prosperous country is ensured by the strong development of agriculture, as well as industry.
Therefore, the stability of the Danish krone is greatly influenced by myrrh prices for SG products, as well as components. Denmark has a very well-developed service sector, so even advanced countries can envy the data on the number of employed people. It is worth noting that the data on the increase in unemployment has a very strong impact on the DKK, since this is not a typical problem for this state. Denmark's stability and energy independence are ensured by large deposits of oil and gas.
Therefore, as oil prices become cheaper, one can notice a pattern in the fall of DKK. However, while the country is fully provided with gas and oil, it has big problems with other extracted raw materials. Therefore, when the price of raw materials for production rises on world commodity markets, the Danish krone sinks very significantly. When analyzing DKK, you need to pay special attention to key macroeconomic indicators, interest rates and tax data.
It is worth noting that taxes in Denmark are very high, so the slightest hint of their reduction leads to a rapid increase in DKK, since a foreign investor begins to invest very actively. The DKK exchange rate greatly depends on the stability of trading partner countries. The main partners are the countries of the European Union, so if the euro begins to fall, then the Danish krone quickly goes in the same direction.
In general, USDDKK is easy to predict if fundamental indicators are used correctly, with the main emphasis being on the dollar. The highest activity occurs during the American and European trading sessions.
Despite the high volatility, USDDKK is not suitable for scalping due to its very high spread. When choosing a broker to work with this instrument, you must give preference to accounts with a floating spread .