USD/KRW could struggle to break the 1,350 level in the short-term – Credit Suisse

Economists at Credit Suisse revise their USD/KRW forecast higher to 1,300-1,365. However. they think that the pair could struggle to break the 1,350 level in the short-term.

KRW follows the leaders, yuan and yen

“We revise our USD/KRW forecast to 1,300-1,365. But we think that the 1,350 will likely show resistance in the short-term.”

“We are cautious on further USD/KRW upside in the short-term as USD/JPY and USD/CNH momentum is likely to slow ahead of key levels of 140 and 6.90, respectively.”

“The fundamentals of weaker Asian export growth and still-elevated oil prices point to further won weakness.”

“The Bank of Korea (BoK) will continue hiking; we forecast 25 bps this Thursday and the following three meetings. Outflows will continue however as the BoK rate is below Fed funds rate.”

See – BoK Preview: Forecasts from seven major banks, monetary tightening set to continue