USD/KRW: Range trade with slight downside bias – OCBC

💡 DMK Insight

USD/KRW is stuck in a range, and here’s why that matters right now: The recent decline in USD/KRW, despite strong Korean exports, highlights a tug-of-war between positive local sentiment and external pressures like US tariff uncertainties. Traders should note that while the KRW is benefiting from solid export data, any risk-off sentiment globally could limit its upside potential. The range-bound nature of this pair suggests that volatility might be muted in the short term, but it also sets the stage for potential breakouts. Watch for key resistance levels that could trigger a shift in momentum. On the flip side, if US tariffs escalate, it could lead to a stronger USD as investors flock to safety, which would further complicate the KRW’s position. Keep an eye on the broader market sentiment and any news regarding US trade policies, as these could act as catalysts for movement. For now, monitoring the 1,300 level on USD/KRW could provide insights into the next directional move.