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…
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
