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1 Month USD/KRW Back Sub 1290, Although Tech Equity Sentiment Falters Further

KRW

1 month USD/KRW got to fresh highs above 1294 post the Asia close on Wednesday, before retracing back to 1286/87 by the NY close, amid broad USD softness. Note onshore spot finished up yesterday just under 1292.

  • For the 1 month NDF, the 20-day EMA is close by, near 1293, while the 200-day sits just above 1304. Recent dips sub 1270 haven't been sustained for the pair.
  • The local data calendar is empty today, we do get the FinMin releasing the monthly government bond issuance plan. President Yoon also visits Vietnam (22-24 of June) leading an economic delegation to the country.
  • In the equity space, the lead for South Korean stocks is negative today. The SOX fell 2.68% in US trade on Wednesday (the fourth straight fall), the MSCI IT fell by 1.41%, also down for the fourth straight session.
  • To recap, the Kospi dropped 0.86% yesterday, while offshore investors sold just under $300mn of local equities. Week to date outflows are near $1bn.

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