KRW
Spot USD/KRW is probing recent highs near 1404 in the first part of Thursday trade. Highs in the pair came close to 1404 in extended Wednesday trade. Trade concerns, with a return of the Trump administration, along with spill over from a surging USD elsewhere saw the won lose 1.5%. This was roughly in line with broader USD index gains, but slightly less than EUR and JPY losses.
- Spot USD/KRW is probing above overbought territory, with the RSI (14) above 70, see the chart below. Earlier comments from the Finance Minister stated the authorities will step in if market volatility expands (per BBG).
- A clean break above 1400 could see 2022 highs near 1450 targeted. Like elsewhere, the bias may be to buy USD dips, with recent lows in the pair just under 1369. Before that the 20-day EMA is near 1374.
- Earlier data showed a rise in the Sep goods balance and current account (the current account above $11.1bn), but with signs of slowing export growth, market sentiment is unmoved.
- Incoming President Trump has also had a call with South Korean President Yoon, where a wide range of issues were discussed. Trump stated the US needs help from South Korea ship builders. This has helped associated names in early equity trading in South Korea.
- Still, the broader Kopsi index is down 0.50% at this stage.
Fig 1: USD/KRW Spot & RSI (14)
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