US Stock Futures Recover as Iran Signals Progress in Peace Talks 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
US Dollar Hits One-Year High as Hawkish Fed Outlook Overshadows Middle East Developments 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Japan Manufacturing Growth Accelerates in June as Orders Surge Despite Iran War Cost Pressures 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Russian Stocks End Flat as MOEX Index Hits New 52-Week Low 
Japan Keeps Markets Guessing as Yen Nears 40-Year Low, Raising Intervention Risks 
The KRW has rallied more than 3 percent since early July, largely due to a broadly weakening dollar and alleviated geopolitical situation on the Peninsula. USD/KRW is now approaching a critical support, suggesting limited downside potential in the pair for now.
The nation’s foreign reserves have climbed persistently in the past four months, slowing the pace of appreciation in the KRW. In addition, the first round of US-China Comprehensive Economic Dialogue was held in Washington on July 19.
However, US Treasury said Wednesday that US-China press conference was cancelled, which could raise some concerns in financial markets. US President Donald Trump said Wednesday that tariffs on steel imports "could happen."
The KRW will remain susceptible to external uncertainty including global liquidity conditions and geopolitical situation. A growing concern over the potential withdrawal of global liquidity will likely bear-steepen UST and KTB yield curves again and weigh on the KRW afterwards.
"We would like to maintain and add to our long CNH/KRW cross position ahead of July ECB meeting while expecting USD/KRW to trade in a range of 1,120 to 1,180 in the July-September quarter," Scotiabank commented in its latest research report.
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