There was fairly a little bit of volatility in FX markets in a single day, with USD declining at first, in response to the Bloomberg headline that US mentioned FX with South Korea. DXY was final at 100.77 ranges, OCBC’s FX analysts Frances Cheung and Christopher Wong observe.
Sideway trades are probably for now
“This was additionally individually confirmed by South Korea’s finance ministry spokesperson. To place in perspective, this was not precisely a contemporary headline because it was initially reported final week by Korea Occasions however was not picked up by the mainstream media shops. On the ADB occasion in Milan final week, BoK Governor Rhee mentioned that Asian currencies, together with the Korean gained, have been gaining floor partly because of the U.S. administration’s strain on Asian nations to understand their currencies.”
“Then USD losses have been partially retraced after Bloomberg carried a separate report saying that US officers are usually not searching for to incorporate forex pledges in commerce offers (in response to an individual conversant in the matter, with out naming the individual). The sharp 2-way strikes highlighted how markets are very delicate to feedback surrounding FX particularly in opposition to a backdrop of chatters of de-dollarisation and questions if FX coverage or pledges have been a part of US bilateral commerce talks. Uncertainty on this entrance should show risky for USD.”
“Bullish momentum on each day chart intact however RSI eased. Sideway trades probably for now until a contemporary catalyst emerges. Resistance at 101.80 (50 DMA), 102.60 (38.2% fibo). Help at 100.80 (23.6% fibo retracement of 2025 peak to trough), 99.85 (21 DMA). The subsequent set of US knowledge to be careful for is retail gross sales, empire manufacturing, industrial manufacturing, preliminary jobless claims and PPI (tonight).”
