FxWirePro: USD/KRW hits fresh multi-month lows post BoK, good to sell rallies

The South Korean won and shares sharply rose on Thursday morning after the bank of Korea kept rates steady.

• BoK kept its policy rates steady at a record low of 1.50 percent early in the session, as widely expected
   
• Weak U.S. economic data anchored doubts that the Federal Reserve unlikely to raise interest rates until the end of the year, weighing on USD
   
• The won was up 1.1 percent at 1,134.2 per dollar as of 0201 GMT, after touching a morning high of 1,133.8, the strongest since July 13
   
• Bank of Korea Governor Lee Ju-yeol at a news conference said that the economy to maintain recovery trend going forward, potential growth rate seen still above 3 pct
   
• USD/KRW weakness has further to go, breaks below 200 DMA at 1124.81 could accelerate downside, test of 1120.78 (Weely 55 EMA) likely
   
• Immediate support is located at 1124.81 (200 DMA) and resistance lies at 1136.50 (weekly Kijun)
   

Recommendation: Good to sell rallies around 1130.0, SL: 1135.0, TP: 1120.0