Deutsche Bank Sees Global Capital Shifts Reshaping Long-Term U.S. Dollar Outlook 
Gold Prices Set for Weekly Loss as Iran Tensions and Fed Rate Outlook Weigh 
Oil Prices Slip but Stay on Track for Weekly Gains as U.S.-Iran Conflict Persists 
Asian Stocks Rise as AI Chip Rally Offsets Middle East Tensions 
Dollar Slips After Fed Minutes as Iran Tensions, Inflation Risks Keep Markets Cautious 
US Stock Futures Steady as US-Iran Tensions and Fed Inflation Concerns Weigh on Markets 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
China Inflation Cools in June as Producer Prices Hit Four-Year High 
Gold Prices Slip as U.S.-Iran Conflict, Fed Rate Hike Bets Pressure Precious Metals 
Gold Price Rebounds as U.S.-Iran Tensions and Fed Minutes Keep Markets on Edge 
Fed Reaffirms 2% Inflation Goal, Vows Forceful Action to Anchor Price Expectations 
The KRW will likely advance further amid resumed equity inflows while remaining susceptible to positioning, external liquidity conditions and hovering geopolitical uncertainty. The currency pair is expected to trade towards 1,110 and then 1,100 after breaking below 1,120 on Tuesday.
The KOSPI share index has been consolidating around the 2,300 level despite equity outflows recorded on Friday and Monday. However, foreign investors turned net buyers of local shares on Tuesday as external liquidity remains ample at current stage as suggested by steadily increasing balance sheets of the Bank of Japan (BoJ) and the European Central Bank (ECB).
"On the other hand, we need pay attention to the positioning. Year-to-date, foreign funds have poured USD 6.89 billion of funds into Korea’s equity markets. We also stay cautious on developments in global liquidity conditions as the KRW could decline versus the USD if investors start to worry about external liquidity shrinking," Scotiabank commented in its latest research report.
