The DKK/USD Spot allows traders to know how many US dollars they will receive for every Danish krone they exchange.
A myriad number of factors influence the currency pairing and value of the two monies in relationship with one another, including the overriding economic outlook in their respective regions, the eurozone and North America. The economy of Denmark is based predominantly on the service sector as the country has limited natural resources.
As such, DKK is not particularly affected by shifts in the global commodities market. However, it does have some interests in the oil sector and as Denmark is a highly industrialised nation, the stability of the country's economy is highly dependent upon imported raw materials and foreign trade.
According to estimates from 2009, Denmark's GDP was predominantly made up of revenues from the services sector (64.7 per cent), industry (30.7 per cent) and agriculture (4.6 per cent). Financial and economic data also plays a key role in the value of USD, with announcements on the state of the US economy from institutions including the Federal Reserve having a significant bearing on forex performance. In 2010, USD was the most-traded currency in global forex markets - making up 84.9 per cent of average daily transactions.
Conversely, DKK accounted for just 0.6 per cent of all transactions.