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RBC Recommend Short USD/KRW

KRW

RBC note that “verbal interventions and other developments have triggered a sharp turnaround in USD/JPY and USD/CNY today, sparking a general retreat in USD/Asia pairs.”

  • “This presents an opportunity to trade a pullback in the USD/KRW pair in the near-term, after it has been testing the top of the year’s range around KRW1,340 over the past month.”
  • “Moreover, there is little sign of risk aversion in broader markets, with the VIX Index near the year’s lows, that would complicate a near-term bounce in the risk-sensitive Korean won.”
  • They therefore recommended selling USD/KRW 1-month NDF as their EM FX trade of the week.
  • The recommendation came at KRW1,329.25, targeting a move in spot to KRW1,311, with a stop set at a daily close above KRW1,344 in spot.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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