USD/KRW Price Analysis: South Korean won rallies hard despite uptick in jobless rate
|- USD/KRW corrects sharply from eight-day highs.
- Broad dollar weakness – the main catalyst behind the fall.
- South Korea’s unemployment rate arrived at 3.8% vs 3.3% previous.
USD/KRW has stalled its corrective slide and looks to extend the recovery momentum above 1,220 levels so far this Friday’s Asian trading. Despite, the latest bounce, the spot sheds 0.75% to currently trade at 1,219.60.
South Korean won rallied hard vs. the greenback in early Asia despite a sharp uptick in the country’s Unemployment Rate for March, which fully reflected the coronavirus impact on the economy.
The cross fell as low as 1,216.83, with the declines mainly fuelled by broad-based US dollar correction from a five-day high of 100.29. A turnaround in the risk sentiment amid signs of likely economic upturn, as US President Trump announced a three-phase plan to re-open the 29 states as soon as Friday.
Further, a 5.2 million surge in the US Jobless Claims also collaborated with the bearish reversal in the US currency across the board.
Meanwhile, the Asian currency failed to take advantage of the recent positive political development while the additional fiscal stimulus plan to fight the coronavirus crisis was also ignored by the KRW bulls.
South Korea held its parliamentary elections on Wednesday which saw the ruling Democratic Party of President Moon Jae-in winning a resounding victory. Meanwhile, the Finance Ministry announced a proposed second supplementary worth 7.6 trillion won ($6.2 billion) to fund cash handouts on 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.