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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KRW
1 month USD/KRW sits just under 1325 currently, down slightly from NY closing levels on Wednesday (1328). We did get above 1333 post the Asia close yesterday, fresh highs back to late November last year. The early tone in onshore spot is to the upside, last at 1327. Both spot and the 1 month NDF are weaker than their respective 200-day MAs.
- As we have highlighted recently, moves above the 200-day MA were USD selling opportunities through late Feb and early March, see the chart below.
- The market may be a little more reluctant to fade this USD bounce given still generally upside momentum in US yields.
- Still, the market is likely to be mindful of fresh rhetoric around FX weakness from the authorities given we have weakened to levels beyond those that prevailed prior to the recent NPS swap announcement.
- The local data calendar remains empty today (March PPI due tomorrow). The early tone to the Kospi is weaker (-0.20%), which is line with softer tech leads from US trading on Wednesday.
Fig 1: USD/KRW 1 Month Above 200-Day MA
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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