1 Month USD/KRW Back To Multi-Month Lows

1 month USD/KRW slumped back to recent lows around 1294/95 late in NY trade on Thursday. This was gain, in won terms, of nearly 1%. Note spot ended Thursday's session onshore just under 1304.

• Won sentiment was aided by the broad USD pullback, lower yields and a tech equity recovery (broader equity indices were also higher). The SOX and MSCI IT indices both gained over 1% for Thursday's session.
• The Kospi and Kosdaq were weaker yesterday. Equity outflows were also chunky at -$467mn.
• For won bulls late Mar lows around 1286 is potential downside target. On the upside recent highs come in around the 1307/08 region, while the simple 50-day MA is around 1301.6.
• On the data front we have already had Apr goods balance and current account figures out. The current account remained in deficit, but FinMin Choo noted yesterday we could turn to a surplus in May.
• Elsewhere, MSCI stated that South Korea still has 9 market accessibility issues, which will need to be addressed before Korea can gain access to broader investment indices (see this link for more details).