USD/KRW: Retracement may find support – OCBC

FXStreet Insights Team FXStreet

USD/KRW saw a sharp run up towards 1444 after President Yoon surprisingly declared martial law. USD/KRW was last at 1413.65 levels, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Pair may retrace in the interim

“The pair subsequently fell after martial law was rescinded (all in the same night). Domestic political uncertainty is the main issue as opposition leaders are now calling for President Yoon to resign or face impeachment. Political uncertainty at home may temporarily weigh on KRW and should fade once we get more clarity.”

“That said, Korea economy is facing a double whammy of sluggish domestic activity and slowing exports. KRW is typically a highly sensitive currency to market developments. The threat of US tariffs, fears of Fed slowing rate cut cycle, RMB trading weaker, alongside domestic political uncertainties may continue to weigh on KRW.”

“Daily momentum is mild bullish while RSI turned lower from overbought conditions. Pair may retrace in the interim. Support at 1410, 1400 (21DMA) and 1385 levels. Resistance at 1425, 1445 levels.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD declines as market caution lifts US Dollar

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

EUR/USD hits yearly low, eyes 1.1350 on USD strength

EUR/USD sits at yearly lows, eyeing 1.1350 in the European morning on Wednesday. The pair remains vulnerable to further declines amid a bullish US Dollar. The Greenback continues to draw support from hawkish Fed bets and US-Iran peace deal uncertainty.

$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar

Gold drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday. Despite easing inflationary concerns in the face of the recent fall in Crude Oil prices, traders have been pricing in a greater chance of a rate hike by the US Federal Reserve.

Dogecoin tests a key make-or-break point amid waning retail support

Dogecoin trades below $0.08000 maintaining a steady decline for the seventh straight week. The meme coin is losing its retail strength as DOGE futures Open Interest drops 10% in 24 hours, while institutional demand remains muted with zero inflows so far this week.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.