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Danish Krone Rose amid the Falling GDP Growth

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Danish krone rose

The Danish krone rose versus the US dollar on December 22, 2015. The fiscal 3Q15 GDP (gross domestic product) growth was slow. On a YoY (year-over-year) basis, the GDP rose by 0.5% in the third quarter—compared to 1.8% growth in the second quarter. The Danish economy fell by 0.4% in the third quarter—compared to a 0.2% rise in the previous quarter. The fall in the GDP occurred for the first time since fiscal 2Q13. The selling of the US dollar after US GDP figures released below expectations also contributed towards the positive sentiment in the Danish krone.

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Retail sales growth fell in November

In Denmark, retail sales rose at a slower rate of 1.0% in November on an annualized basis—compared to 2.4% growth in October. On a monthly basis, retail sales rose marginally by 0.1% in November compared to a rise of 0.5% in October. Lower consumption figures failed to drag the Danish krone down against the US dollar. The US Dollar Index measures the strength of the US dollar. It was trading negatively on December 22, 2015.

Impact on the market

Looking at the movement in the ETFs, the iShares MSCI Denmark Capped ETF (EDEN) extended its gain on December 22, 2015. It rose by 0.73%. On the other hand, the iShares MSCI Norway Capped ETF (ENOR) ended on a positive note by 1.9%.

Among the Danish ADRs (American depositary receipts), Novo Nordisk B (NVO) fell by 0.26%. Among other Scandinavian ADRs, Norwegian petroleum company Statoil ASA (STO) rose by 1.6%. Dutch company Koninklijke Philips Electronics (PHG) ended positively. It rose by 1.0%.

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