USD/KRW Forms Bullish Golden Cross Before BOK Decision: Charts
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- USD/KRW is poised to rally in medium term after 50-DMA rises above 200-DMA, forming a golden cross, Bloomberg strategist David Finnerty writes.
Alert: HALISTER1- Advance is likely even if BOK keeps rates unchanged on Thursday, as economists predict
- If the rally resumes, pair will first eye test of Nov. 21 high of 1,186.93, with a breach leading to test of 1,198.05 May 31 high
- In near term, USD/KRW may consolidate given signs dollar’s recent rally may be topping out
- BOK will leave its 7-day repo rate at 1.25%, according to all 19 economists surveyed by Bloomberg
- Central bank has to juggle cutting rates to help bolster the economy where indebted companies are restructuring, with keeping them on hold to help support the currency
- NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Source: BFW (Bloomberg First Word)
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UUID: 7947283