USD/KRW likely to trade in range of 1,055-1,085, risks remain on breaking above the upper bound: Scotiabank

The USD/KRW currency pair is expected to trade in a range of 1,055-1,085 at the moment but with rising risks of breaking above the upper bound. We keep a close eye on resurfacing geopolitical uncertainty on the Peninsula, according to a recent report from Scotiabank.

North Korea has threatened to scrap the planned U.S.-North Korea summit over US nuke demands, after calling off talks with South Korea scheduled for Wednesday over the joint US-South Korea military exercises. North Korea said the US must stop insisting it “unilaterally” abandon its nuclear program and stop talking about a Libya-style solution to the standoff, according to The Washington Post.

While it has cast doubt on the summit tentatively set for 12 June in Singapore, the move may aim to seek a stronger bargaining position rather than venting over US rhetoric as the drills are planned well in advance. White House spokeswoman Sarah Huckabee Sanders said the Trump administration was "still hopeful" that the planned summit with North Korea would take place.

Chinese President Xi Jinping said on Wednesday that China supports the improvement of North-South Korean relations and the promotion of dialogue between North Korea and the US when meeting with a delegation from North Korea's ruling Worker's Party according to China’s state broadcaster CCTV.

"The 10-year UST yield is now running around 3.10 percent, which is expected to bolster the DXY index in the run-up to the June 12-13 FOMC meeting," the report added.

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