South Korean Won: Appreciation may slow against US Dollar – OCBC
OCBC Bank strategists Sim Moh Siong and Christopher Wong observe that USD/KRW has consolidated after sharp declines over the past eight sessions, with exporter and month-end US Dollar (USD) selling offset by a firmer USD tone and foreign equity outflows.
OCBC Bank analysts Sim Moh Siong and Christopher Wong indicate that the South Korean Won (KRW) may experience a slowdown in its appreciation against the US Dollar (USD). The USD/KRW pair has recently consolidated following sharp declines over the preceding eight sessions, with exporters and month-end USD selling providing support, while a firmer USD tone and significant foreign equity outflows counterbalanced this.
The analysts suggest that while the KRW support remains intact, the pace of recent appreciation may be moderating. Focus now shifts to the Bank of Korea (BoK) meeting, where strong growth and persistently firm core inflation could lead policymakers to pause after the July hike. Moreover, the upcoming US data calendar, Jackson Hole, and month-end flows could contribute to more two-way trading before the week's end.
The USD/KRW pair closed at 1384, with flat daily momentum and RSI near oversold conditions. Support is identified at 1375 and 1365 levels, while resistance is observed at 1390 and 1397.
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