- Analytics
- News and Tools
- Market News
- USDK/KRW: BoK's pause will do little to help Won, but weakness will be short-lived – TDS
USDK/KRW: BoK's pause will do little to help Won, but weakness will be short-lived – TDS
The Bank of Korea (BoK) kept its policy rate on hold at 3.50%. Economists at TD Securities believe that the Won weakness will be short-lived as the USD/KRW pair faces stubborn resistance at its 200-Day Moving Average.
BoK maintains hawkish bias despite pause
“The BoK maintained its policy rate at 3.50% in an unanimous decision. In the accompanying statement, BoK didn't give any sense it would consider easing soon, seeing a ‘restrictive stance as warranted for considerable time’ and keeping open the option to hike further.”
“We think the BoK will see the 300 bps of hikes in its current cycle as sufficient to slow inflation going forward as the economy weakens, without needing to hike further. We maintain our bigger than consensus expectation of 75 bps easing in Q4 this year, with markets only pricing in a small probability of cuts.”
“Today's outcome will do little to help KRW, though we continue to believe its weakness will be short-lived as US yields fall back.”
“Strong resistance for USD/KRW is likely around its 200-DMA at 1,323.73.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
