OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: Korean tensions at impasse, risk premium to unwind – ANZ

FXstreet.com (Barcelona) - Though North Korea continues to make threats towards the South, it is hard to see how much further tensions can escalate from here, short of an actual conflict developing. According to Senior FX Strategist Khoon Goh at ANZ, “We believe markets are starting to take the view that the worst is over, and that the geopolitical risk premium will gradually unwind.” Given that market positioning is still short KRW, there is scope for further gains in the won as these positions get squared up. Seasonal factors also support a rebound in won during the remainder of April.

“We recommend selling 3m USD/KRW NDF at 1121.1 (spot reference 1117.2), targeting 1080 with stop-loss at 1135.” Goh adds.

Forex: EUR/USD falls 100 pips on Buba’s Weidmann interview

The market tumbled on the US session following an interview by Buba’s Weidmann to the Wall Street Journal in which he hints a ECB rate cut soon in case of more gloomy economic data in the Eurozone. Having peaked at 1.3199 high ahead of EMU construction output during the European morning, the EUR/USD was comfortable just below 13150 when the article was published and investors reacted by selling the EUR. The pair is now quoting 100 pips lower, stable at 1.3050, after printing a low at 1.3034.
Read more Previous

Forex: USD/CAD retreating from highs

The Canadian dollar is prolonging its depreciation against the greenback on Wednesday, although trimming part of the losses after hitting session lows in levels shy of the psychological 1.0300 handle...
Read more Next
Start livechat