fxs_header_sponsor_anchor

News

USD/KRW Price Analysis: S. Korean won corrects from three-week lows despite poor GDP

  • USD/KRW falls further from 3-week tops despite S. Korea’s awful GDP data
  • US dollar pullback from two-week highs adds to the downside.
  • South’s third stimulus plan likely underpins the domestic currency.

USD/KRW falls further from three-week highs reached at 1,241.23 reached earlier this week, as the South Korean won is on a recovery mode despite the bearish fundamentals.

The spot quickly faded a spike to 1,236.64 highs despite the South’s Q1 GDP having dropped by 1.4% q-q, the worst contraction since Q4 2008.

The downtick in USD/KRW could be also associated with the broad-based US dollar retreat from two-week highs, as the risk tone improved in Asia amid lockdown easing hopes worldwide.

Meanwhile, the won could be also benefiting from the third economic stimulus package announced by President Moon Jae-In on Wednesday. Moon said the government will increase policy financing rescue package to 135 trillion won, from 100 trillion won.

At the time of writing, USD//KRW sheds 0.10% to trade near 1,232, as the focus now shifts towards the US Jobless Claims data due later this Thursday.

South Korean won: Levels to watch

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.