USD/KRW Price Analysis: S. Korean won spikes to weekly tops after N. Korea suspends military action
|- Korean won (KRW) jumps almost five big figures.
- USD/KRW downed by N. Korean goodwill gesture.
- US dollar weakness exacerbates the pain in the spot.
USD/KRW witnessed a massive five-figure crash in a matter of minutes and hit the lowest level in seven days at 1,203.81.
The Korean won (KRW) caught a fresh bid-wave following reports that North Korea’s cancellation of military action against the South. The North’s Central Military Commission, led by Chairman Kim Jong-Un, decided against an earlier plan to deploy more troops to the border.
The pain in the cross was also exacerbated by the overnight slump in the US dollar across its main peers after the optimism over the global economic recovery combined with upbeat US data boosted the Wall Street rally and destroyed the demand for the safe-haven, the USD.
Attention now turns towards the Fedspeak and sentiment on the global stock markets for fresh trading impetus. The coronavirus stats also will have a significant bearing on the spot, especially after S. Korea raised concerns over the community transmission.
From a technical perspective, bears see Jun 12 low of 1,203.35 as their initial target and a break here would open up Jun 11 low of 1,188.60. Conversely, bulls look to a rebound above Jun 17 high of 1,218.60, which would shift focus to Jun 3 high/50-DMA at 1,220.05/1,221.04, as cited by Market News Service.
USD/KRW additional levels
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.