South Korean Won: Losses risks building toward 1400 against US Dollar – TD Securities
TD Securities strategists argue that USD/KRW’s roughly 14% decline from its June peak leaves the pair at the bottom of its two-year range.
TD Securities analysts predict that the South Korean Won (KRW) will likely rebound and reach 1400 against the US Dollar (USD) in the near future, following a 14% decline from its June peak. This decrease places USD/KRW near its two-year low. Historically, similar drawdowns have led to mean reversion, with the currency rebounding over the following months.
The current valuation indicates an overbought KRW, suggesting it should gravitate back towards its short-term fair value of around 1400. Investors may consider this higher USD/KRW outlook, as the current USD positioning may not be long. Additionally, KRW could weaken against regional peers like the Japanese Yen (JPY) and Chinese Yuan (CNY), which are supported by various factors such as multi-decade low FX settlements and upside data in China.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
