April 28, 2024 23:34 GMT
1 Month Above 1370, Weaker Yen A Headwind Against Stronger Global Equities
KRW
1 month USD/KRW finished up Friday trade near 1375. The pair couldn't get beyond 1376 post Friday's onshore spot close. Spot finished up at 1375.3 on Friday. The weaker yen, which extended losses post the BoJ on Friday, was a clear won headwind, but better global equity sentiment provided an offset.
- For the 1 month NDF, we remain within recent ranges. Downside levels at the 20-day EMA around 1366.40 will be in focus, while last week saw moves above 1380 or near this level draw selling interest. Of course, the 1400 level also remains an upside focus point, given the step up in FX rhetoric.
- The local data calendar is empty until tomorrow's March industrial production, cyclical leading index print (retail sales is out later). On Wednesday full month April trade figures are due.
- This will leave the won driven by broader risk flows/USD trends.
- To recap, the Friday session saw continued tech outperformance. The SOX rose 2.61%, to be up 9.95% last week. The MSCI IT index rose 1.76% for Friday, to be up just under 5% last week.
- The Kospi rose +1.05% for Friday, with $287.4mn in net equity inflows from offshore investors, although outflows were still evident for the week in total (-$260.7mn).
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