South Korea’s Gross Domestic Product (GDP) fell by 0.3% in the fourth quarter. This was worse than the expected growth of 0.1%. In other news, the price of silver dropped below $92.00 as demand for safe-haven assets decreased. The Japanese Yen steadied against the USD, with the market awaiting the Bank of Japan’s upcoming interest rate decision.

Market Fluctuations

The price of WTI crude oil settled at about $60.50, amid ongoing worries about oversupply. The NZD/USD pair rose to nearly 0.5850 as tariff concerns eased. The Australian Dollar gained strength due to employment data that improved expectations for the Reserve Bank of Australia’s policy. Major currencies and assets saw changes, with EUR/USD falling below 1.1700 as selling pressure renewed. The GBP/USD moved within a tight range above 1.3400, as traders kept an eye on upcoming US economic data. Gold prices fell below $4,800, with reduced tension over tariffs between the US and Europe. Overall, stocks, bonds, and other assets started to recover after recent swings in the market.

Korean Market Concerns

Monero (XMR) fell further, dipping below $500 due to ongoing selling. This marks a 38% decline from its peak of $800 seen last Wednesday. The unexpected 0.3% drop in South Korea’s fourth-quarter 2025 GDP is a major concern, especially compared to the predicted 0.1% growth. This signals a significant slowdown in a critical global trade indicator, indicating a stronger chance of a technical recession. This could lead to a reassessment of risk in Asian markets. As a result, we foresee further weakness in the Korean won against the US dollar. In late 2025, South Korea’s exports declined for three straight months, largely due to a global downturn in semiconductor demand, which dropped over 15% year-on-year. This trend suggests that shorting the won or buying USD/KRW futures will be key strategies, possibly pushing rates toward 1,450 in the upcoming weeks. On the stock market side, considering short positions on the KOSPI 200 index futures is advisable. With export-focused tech giants like Samsung and SK Hynix facing challenges from lower demand and a weak global outlook, their earnings could struggle. Traders might also look into buying put options on major Korean ETFs to prepare for potential declines. This slowdown will not happen in isolation and could affect neighboring economies. The Bank of Japan, already cautious about tightening, might use this data to delay any rate hikes. We expect the Japanese yen to weaken further, making long USD/JPY positions appealing. This situation is also negative for industrial commodities, particularly crude oil and copper. South Korea’s status as a large manufacturer means its economic contraction suggests less global demand for raw materials. Therefore, we believe WTI crude oil may find it hard to maintain the $60 per barrel mark, and any price increases could be a chance to enter short positions. Create your live VT Markets account and start trading now.

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