Investing.com — The Danish krone skilled a dip following disappointing medical trial outcomes from Denmark’s pharmaceutical big, Novo Nordisk (NYSE:) A/S. The outcomes have raised considerations over the potential influence on the Nordic nation’s financial system.
On Friday, the krone was buying and selling at 7.4614 in opposition to the euro in Copenhagen, barely down from 7.4592 previous to the discharge of Novo Nordisk’s knowledge. Regardless of the dip, the krone remained inside the 7.2925 to 7.6282 vary in opposition to the euro, as set by the central financial institution to take care of the forex peg. In response to market analysts, there have been no indications of an intervention within the forex market.
The lower was triggered by knowledge from Novo Nordisk, which revealed that sufferers utilizing its experimental weight problems drug, CagriSema, misplaced much less weight than anticipated in a examine. The information precipitated Novo’s shares to plummet by as a lot as 29%, the biggest drop on report, and dragged Denmark’s benchmark OMXC25 index down by over 5%.
Kristoffer Kjaer Lomholt, head of FX analysis at Danske Financial institution (CSE:) A/S, famous that the sell-off of Novo Nordisk is contributing to the strengthening of the euro in opposition to the Danish krone. He added that company sector flows, together with these from pharmaceutical firms, have gained vital significance in recent times, notably with the rise of Novo Nordisk.
Regardless of the dip, Lomholt highlighted that market volumes had been skinny because of the upcoming Christmas vacation and warranted that there was no rapid want for an intervention out there.
Lately, Denmark’s financial system has change into more and more reliant on Novo Nordisk.
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