USD/KRW: South Korean won to strengthen in 2022 against the US dollar – MUFG

Matías Salord FXStreet

After a poor performance of the South Korean won during 2021, analysts at MUFG Bank consider it looks now undervalue. They expect the USD/KRW pair to decline to 1145 by the fourth quarter of the current year.

Key Quotes:

“KRW depreciated 9.4% against the US dollar in 2021, the second worst performing currency among emerging Asia currencies last year. KRW’s sizeable depreciation was due to the worsened pandemic condition in the country. The Bank of Korea (BoK) raised the 7-day repo rate twice in 2021, with a 25bps hike to 0.75% on August 26th and another 25bps hike to 1.0% on November 25th.”

“In 2022, the engines for Korea’s growth will be better performance of the service sector, stronger private consumption as COVID conditions improve and continued fiscal stimulus. However, tighter financial conditions (50bps policy rate hike) due to its CB’s desire in managing financial risks amid indebted households, and lower exports growth will constrain South Korea’s pace of expansion.”

“The KRW is undervalued now in both effective exchange rate terms and bilateral terms against USD. With the pandemic becoming more controllable in 2022, a steadily economic recovery and better controlled pandemic condition in South Korea would help build confidence and a

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD stays weak near 1.1650 ahead of critical US events

EUR/USD stays in the red near 1.1650 in the European trading hours on Friday. The pair remains undermined by broad US Dollar strength and a cautious market mood. Traders keenly await the US Nonfarm Payrolls data and Supreme Court's ruling on Trump's tariff powers for further direction.

GBP/USD holds lower ground below 1.3450, with eyes on US data

GBP/USD remains subdued for the fourth consecutive day, while trading below 1.3450 in the European session on Friday. Markets remain in a wait-and-see mode before the key US event risks and prefer to hold the US Dollar, which weighs negatively on the pair. The US monthly jobs data and the Supreme Court decision on tariffs are awaited.

Gold flat lines around $4,475; looks to US NFP report for fresh impetus

Gold reverses a modest intraday dip to the $4,453 area, and trades near the top end of its daily range heading into the European session. The upside, however, seems limited as traders might opt to wait for the US Nonfarm Payrolls report later today. The crucial employment details will be looked upon for more cues about the Federal Reserve's rate-cut path.

Nonfarm Payrolls expected to show US labor market remained weak in December

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for December on Friday at 13:30 GMT. Economists expect Nonfarm Payrolls to rise by 60,000 in December following the 64,000 increase recorded in November.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.