USD/KRW: An extension towards 1,320 could be on the cards – SocGen

On Thursday, the Bank of Korea meets and it is expected to stand pat. Economists at Société Générale expect the Won to struggle.

BoK to keep the key 7-day repo rate unchanged at 3.50%

“We expect the BoK to keep the key 7-day repo rate unchanged at 3.50% tomorrow. However, the board members’ view of terminal rate is likely to be evenly split between 3.50% and 3.75%. This may not be of much help to the currency.”

“For USD/KRW, an extension towards 1,320 could be on the cards if the FOMC minutes are hawkish and US PCE causes more inflation jitters on Friday.”

See – BoK Preview: Forecasts from four major banks, first pause in a year