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Growing Evidence Of Bullish Bias In USD/KRW Ahead Of BoK Policy Review

KRW

Bullish momentum remains behind spot USD/KRW, with the rate lodging fresh one-month highs this morning. The rate trades +2.30 figs at KRW1,235.60 at typing, after completing a double-bottom pattern on Monday, in a sign that the pullback off Mar 15 cycle peak (KRW1,244.00) was purely corrective in nature. Bulls now look for a re-test of that level as a break here would confirm that they are having the upper hand. Bears need a dip through the 50-DMA at KRW1,211.81 to get some reprieve.

  • USD/KRW 1-month NDF last seen at KRW1,235.95, a touch higher on the day. Topside focus falls on Mar 15 cycle high of KRW1,247.94, with bears looking for sales past the 50-DMA at KRW1,213.23.
  • Reminder that South Korea's labour market report for the month of March will hit the wires on Wednesday.
  • Economists surveyed by Bloomberg are almost evenly split on whether the BoK will raise its benchmark policy rate by 25bp come the end of this week's meeting. Policymakers will announce their decision on Thursday.

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