South Korean Won: Export strength fails to stop gains – Societe Generale
Societe Generale reports that the Korean Won remains under selling pressure despite strong export growth and a wider trade surplus. USD/KRW has broken above the 1,550 psychological level, with interim resistance identified higher. The bank links AI-driven export gains and rising inflation to a clearer path for the Bank of Korea to resume tightening, starting with a 25bp hike in two weeks.
Won under pressure despite robust exports
"The KRW is another Asian currency struggling to shake off selling pressure."
"Strong export growth of 70.9% in June and the widening of the trade surplus to $36.2bn from $27.03bn in May failed to block the foray of USD/KRW above the psychological barrier of 1,550."
"Interim resistance is situated at 1,561 before 1573/1580."
"The AI led jump in exports and acceleration of inflation to 3.2% in June clears the path for the BoK to resume policy tightening, starting with 25bp to 2.75% in two weeks."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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