Danish Central Bank

The Danish currency is think traded and many may have never even looked at it. The Danish central bank has cut their deposit rate to -0.20% from -0.05% and has stated that it has all the tools necessary to defend its currency peg.

Given the SNB mess, do you trust that the Danish central bank will indeed maintain its peg?

Simple answer is yes.

I could write a very long post about the reasons for same but will try to just make a few points.

The Danish peg is law decided by the Politicians and the entire economic system of Denmark is based upon that peg and has been for over 30 years (obviously not pegged to the EUR from the beginning).

The Danish central bank and the ECB has a mutual agreement in place to support each others currencies by any and all means without an upper limit.

The SNB unilaterally decided to peg the CHF to the EUR with no support from the ECB.

+1 on what rindoan said. Should they decide to get rid of the cap than it will be a totally different scenario and a month long process at best.