Economists at TD Securities do not expect the USD/KRW pair to establish above its year-to-date highs at 1,345.
— Neh (@nehcap) August 24, 2023
Korea will be impacted by China’s escalating economic problems.
China’s growing economic troubles will weigh on Korea and add to greater uncertainty over its growth outlook.
USD/KRW closed above its YTD high at 1,345 but didn’t manage to push higher given signs of exhaustion in the USD based on momentum indicators.
— FXStreet News (@FXStreetNews) August 24, 2023
We still remain bearish on the USD in the 2H and don’t expect USD/KRW to revisit its YTD high again but prefer to take a nimble view given choppy price action amidst the summer season.