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1 Month USD/KRW Back Sub 1300, First 10-days Of July Trade Data On Tap

KRW

1 month USD/KRW found selling resistance above 1305 post the Asia close on Monday. The pair then tracked lower in the NY session amid broad USD losses, finished up at 1297.30, which was around closing levels from last Friday. We remain within recent ranges for the 1 month NDF. Note onshore spot finished up at 1306.35 on Monday, so the early impetus in spot is likely to be to the downside.

  • First up today we have the first 10-days of trade data for July on tap. Export growth has been showing some signs of basing so this data will be watched for any further improvement in the trend.
  • In the cross asset space, the lead for South Korean equities is more positive today. The SOX rose 2.06% for Monday's session, while the MSCI IT gained a more modest 0.12%, but this was the first gain in 6 sessions for the index.
  • To recap, the Kospi lost 0.24% yesterday, while offshore investors sold $190.6mn of local equities, taking July to date flows back to flat.

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