USD/KRW Price Analysis: S. Korean won spikes to weekly tops after N. Korea suspends military action
- Korean won (KRW) jumps almost five big figures.
- USD/KRW downed by N. Korean goodwill gesture.
- US dollar weakness exacerbates the pain in the spot.
USD/KRW witnessed a massive five-figure crash in a matter of minutes and hit the lowest level in seven days at 1,203.81.
The Korean won (KRW) caught a fresh bid-wave following reports that North Korea’s cancellation of military action against the South. The North’s Central Military Commission, led by Chairman Kim Jong-Un, decided against an earlier plan to deploy more troops to the border.
The pain in the cross was also exacerbated by the overnight slump in the US dollar across its main peers after the optimism over the global economic recovery combined with upbeat US data boosted the Wall Street rally and destroyed the demand for the safe-haven, the USD.
Attention now turns towards the Fedspeak and sentiment on the global stock markets for fresh trading impetus. The coronavirus stats also will have a significant bearing on the spot, especially after S. Korea raised concerns over the community transmission.
From a technical perspective, bears see Jun 12 low of 1,203.35 as their initial target and a break here would open up Jun 11 low of 1,188.60. Conversely, bulls look to a rebound above Jun 17 high of 1,218.60, which would shift focus to Jun 3 high/50-DMA at 1,220.05/1,221.04, as cited by Market News Service.
USD/KRW additional levels