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.

Dhwani Mehta FXStreet

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

USD/KRW

Overview
Today last price	1232.40
Today Daily Change	-1.64
Today Daily Change %	-0.13
Today daily open	1234.05

Trends
Daily SMA20	1221.83
Daily SMA50	1215.2
Daily SMA100	1193.34
Daily SMA200	1191.09

Levels
Previous Daily High	1237.66
Previous Daily Low	1230.21
Previous Weekly High	1230.16
Previous Weekly Low	1209.64
Previous Monthly High	1292.5
Previous Monthly Low	1176.33
Daily Fibonacci 38.2%	1234.82
Daily Fibonacci 61.8%	1233.06
Daily Pivot Point S1	1230.29
Daily Pivot Point S2	1226.53
Daily Pivot Point S3	1222.84
Daily Pivot Point R1	1237.74
Daily Pivot Point R2	1241.42
Daily Pivot Point R3	1245.18

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD remains cautious near 1.1760 ahead of US data

EUR/USD trades marginally on the defensive at the end of the week, hovering around the 1.1770-1.1760 band against the backdrop of an equally humble advance in the US Dollar. Meanwhile, investors gear up for the release of key US data later in the day, including PCE and GDP figures.

GBP/USD looks slightly bid near 1.3480, focus on US docket

The British Pound gathers some fresh steam on Friday, prompting GBP/USD to reverse four consecutive days of losses and revisit the 1.3480 zone. Cable’s decent bounce comes on the back of modest gains in the Greenback prior to the release of significant US data.

Gold extends the recovery past $5,000/oz, looks at US data

Gold prices advance for the third straight day on Friday, reaching new multi-day highs just north of the key $5,000 mark per troy ounce. The continuation of the precious metal’s uptick follows steady geopolitical effervescence in the Middle East, while traders eagerly await key US data releases.

US GDP growth expected to slow down significantly in Q4 after stellar Q3

The United States Bureau of Economic Analysis will publish the first preliminary estimate of the fourth-quarter Gross Domestic Product at 13:30 GMT. Analysts forecast the US economy to have expanded at a 3% annualized rate, slowing down from the 4.4% growth posted in the previous quarter.

Week ahead – Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.