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Forex pairs in this Article » (San Francisco) - According to Jonathan Cavenagh, FX strategist at Westpac in Singapore, there is good reason to go long USD/KRW.

Mr. Cavenagh explains: "At the outset we would stress that this is a tactical rather than strategic trade. At present we feel Asian currencies are expensive relative to where other asset classes are trading."

Mr. Cavenagh continues: "Our sentiment gauge tells us that too much good news is priced into the Asian currency outlook at present. We have already seen some Asian currencies start to falter but we feel it is only a matter of time before KRW starts to come under more selling pressure."

Mr. Cavenagh concludes: "Overall, our medium term view (next 6-12 months) remains quite positive on KRW. Coupled with renewed concerns surrounding the global outlook and we can quite easily envisage a scenario where USD/KRW pushed back through 1100 over the coming period."
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