S&P’s Roache: BOK to stand pat all the way through 2022

Dhwani Mehta FXStreet

The Bank of Korea (BOK), South Korea's central bank, is likely to hold its interest rates, currently at 0.50%, "all the way through 2022," Shaun Roache, Chief Economist at S&P Global Ratings, told an online media briefing on Wednesday.

He said that additional policy support will be needed “as jobs recovery, inflation and the overall economic revival after the COVID-19 vaccine distribution are expected to take some time.”

His comments came after the South Korean Q4 GDP beat expectations, arriving at 1.1% QoQ vs. 0.7% expectations on Tuesday.

Meanwhile, USD/KRW extends the early bounce to regain 1,100 amid broad-based US dollar bounce and fresh covid concerns in the Asian nation.

The Korean won fell after the country reported a jump in infections on Wednesday. “More than 100 cases were confirmed overnight among people linked to a church and its mission school in Gwangju, about 270 kms (168 miles) south of Seoul, officials said. Another 171 cases had been linked to an affiliated school in the city of Daejeon since Jan. 17,” per Reuters.

The spot was last seen trading at 1,104, up 0.27% on the day.

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 retreats below 1.1800 following earlier rebound

EUR/USD loses its recovery momentum and trades little-changed on the day below 1.1300 in the second half of the day on Wednesday. The modest improvement seen in risk mood limits the US Dollar's gains and allows the pair to hold its ground.

GBP/USD clings to small gains above 1.3500

GBP/USD is posting moderate gains above 1.3500 on Wednesday. The pair edges higher as the US Dollar meets fresh supply amid a modest improvement seen in risk sentiment following US President Donald Trump’s first State of the Union address.

Gold rises toward $5,200, supported by geopolitics and trade jitters

Gold buyers are back in the game, eyeing $5,200 and beyonf on Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

Nvidia remains at the heart of the AI boom

Nvidia remains at the heart of the AI boom, with Q4 revenue projected near $65.6–66.1 billion, nearly 70% higher year-over-year. But investors are watching cash flow, leverage, and broader AI adoption. Growth is strong, but the AI stress isn’t over.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.