South Korean Won: Bearish Won view with 1,400 support – TD Securities
TD Securities turns bearish on the Korean Won, arguing USD/KRW is likely to find support around 1,400 as prior KRW strength fades.
TD Securities has adopted a bearish stance on the South Korean Won, predicting that the USD/KRW exchange rate will find support near 1,400 as the previous KRW strength diminishes. The analysts have initiated short positions on KRW against the US Dollar and Japanese Yen through NDFs, citing an overvalued currency, dwindling momentum and negative correlation with AI equities, while highlighting the risk of unhedged foreign investments as the primary upside risk to the KRW.
TD Securities believes that bullish KRW momentum is beginning to wane, and the recent gains can be partially retraced due to the stabilization of AI equity sentiment after the Q2 US earnings.
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