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1 Month USD/KRW Back To Mid April Lows

KRW

1 month USD/KRW has hit fresh lows back to mid April, the pair last just near 1304. Positive risk equity tones, led by the sharp rally in HK tech stocks is aiding broader risk appetite. The Kospi is up close to 1% as well, with offshore investors adding $79.9mn to local shares, bringing week to date flows close to $1bn.

  • Won bulls could target the simple100-day MA, back close to 1298.50. We haven't been sub this resistance point since mid March this year. The 200-day MA sits at 1326.65 on the topside.
  • Earlier, May inflation slowed further, while Q1 GDP y/y was revised a touch higher (see this link). The South Korean FinMin stated the export growth trend should improve.
  • A BoK board member noted the structural headwinds for the won, but this hasn't impacted FX sentiment today (see this link).

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